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Full text of "North Carolina Register v.9 no. 8 (7/15/1994)"

/Krw/ 7 434/A2/M&7' 



The 



NORTH CAROLINA 

REGISTER 



IN THIS ISSUE 



m^s^ 



CORd 

tion| u 



EXECUTIVE ORDER 



IN ADDITION 

Voting Rights Act 



PROPOSED RULES 

Barber Examiners 

Human Resources 

Insurance 

Justice 

Medical Examiners 

Physical Therapy Examiners 

Public Education 

Transportation 



RRC OBJECTIONS 




CONTESTED CASE DECISIONS 



ISSUE DATE: July 15, 1994 



Volume 9 • Issue 8 • Pages 504 - 587 



INFORMATION ABOUT THE NORTH CAROLINA REGISTER AND ADMINISTRATIVE CODE 



NORTH CAROLINA REGISTER 

The North Carolina Register is published twice a month and 
contains information relating to agency, executive, legislative and 
judicial actions required by or affecting Chapter 1 50B of the General 
Statutes. All proposed administrative rules and notices of public 
hearings filed under G.S. 1 50B-21 .2 must be published in the Register. 
The Register will typically comprise approximately fifty pages per 
issue of legal text. 

State law requires that a copy of each issue be provided free of 
charge to each county in the state and to various state officials and 
institutions. 

The North Carolina Registeris available by yearly subscription at 
a cost of one hundred and five dollars ($105.00) for 24 issues. 
Individual issues may be purchased for eight dollars ($8.00). 

Requests for subscription to the North Carolina Register should be 
directed to the Office of Administrative Hearings, P. O. Drawer 27447, 
Raleigh, N.C. 27611-7447. 

ADOPTION, AMENDMENT, AND REPEAL OF 
RULES 

The following is a generalized statement of the procedures to be 
followed for an agency to adopt, amend, or repeal a rule. For the 
specific statutory authority, please consult Article 2A of Chapter 1 50B 
of the General Statutes. 

Any agency intending to adopt, amend, or repeal a rule must first 
publish notice of the proposed action in the North Carolina Register. 
The notice must include the time and place of the public hearing (or 
instructions on how a member of the public may request a hearing); a 
statement of procedure for public comments; the text of the proposed 
rule or the statement of subject matter; the reason for the proposed 
action; a reference to the statutory authority for the action and the 
proposed effective date. 

Unless a specific statute provides otherwise, at least 15 days must 
elapse following publication of the notice in the North Carolina 
Registerbefore the agency may conduct the public hearing and at least 
30 days must elapse before the agency can take action on the proposed 
rule. An agency may not adopt a rule that differs substantially from the 
proposed form published as part of the public notice, until the adopted 
version has been published in the North Carolina Register for an 
additional 30 day comment period. 

When final action is taken, the promulgating agency must file the 
rule with the Rules Review Commission (RRC). After approval by 
RRC, the adopted rule is filed with the Office of Administrative 
Hearings (OAH). 

A rule or amended rule generally becomes effective 5 business 
days after the rule is filed with the Office of Administrative Hearings 
for publication in the North Carolina Administrative Code (NCAC). 

Proposed action on rules may be withdrawn by the promulgating 
agency at any time before final action is taken by the agency or before 
filing with OAH for publication in the NCAC. 



TEMPORARY RULES 

Under certain emergency conditions, agencies may issue tem 
rary rules. Within 24 hours of submission to OAH, the Codifiei 
Rules must review the agency's written statement of findings of n 
for the temporary rule pursuant to the provisions in G.S. 1 50B-21 . 1 
the Codifier determines that the findings meet the criteria in C 
150B-21.1, the rule is entered into the NCAC. If the Codi 
determines that the findings do not meet the criteria, the rule is retur 
to the agency. The agency may supplement its findings and resub 
the temporary rule for an additional review or the agency may respi 
that it will remain with its initial position. The Codifier, thereafter, 
enter the rule into the NCAC. A temporary rule becomes effect 
either when the Codifier of Rules enters the rule in the Code or on 
sixth business day after the agency resubmits the rule without chai 
The temporary rule is in effect for the period specified in the rule or 
days, whichever is less. An agency adopting a temporary rule n 
begin rule-making procedures on the permanent rule at the same t 
the temporary rule is filed with the Codifier. 

NORTH CAROLINA ADMINISTRATIVE CODE 

The North Carolina Administrative Code (NCAC) is a compi lat 
and index of the administrative rules of 25 state agencies and 
occupational licensing boards. The NCAC comprises approximai 
1 5,000 letter size, single spaced pages of material of which appn 
mately 35% is changed annually. Compilation and publication of 
NCAC is mandated by G.S. 150B-21.18. 

The Code is divided into Titles and Chapters. Each state agenc 
assigned a separate title which is further broken down by chapt 
Title 21 is designated for occupational licensing boards. 

The NCAC is available in two formats. 

(1) Single pages may be obtained at a minimum cost of 
dollars and 50 cents ($2.50) for 10 pages or less, plus fift 
cents ($0.15) per each additional page. 

(2) The full publication consists of 53 volumes, totaling 
excess of 15,000 pages. It is supplemented monthly v 
replacement pages. A one year subscription to the 
publication including supplements can be purchased 
seven hundred and fifty dollars ($750.00). Individual < 
umes may also be purchased with supplement service, 
newal subscriptions for supplements to the initial publical 
are available. 

Requests for pages of rules or volumes of the NCAC shouk 
directed to the Office of Administrative Hearings. 



CITATION TO THE NORTH CAROLINA 
REGISTER 

The North Carolina Register is cited by volume, issue, 
number and date. 1:1 NCR 101-201, April 1, 1986 refers to Voh 
1, Issue 1, pages 101 through 201 of the North Carolina Registeriss 
on April 1, 1986. 



FOR INFORMATION CONTACT: Office of Administra- 
tive Hearings, ATTN: Rules Division, P.O. Drawer 27447, 
Raleigh, North Carolina 27611-7447, (919) 733-2678. 



( 












NORTH 
CAROLINA 
REGISTER 




Office of Administrative Hearings 

P. O. Drawer 27447 

Raleigh, North Carolina 27611-7447 

(919) 733-2678 



Julian Mann III, 

Director 
James R. Scarcella St., 

Deputy Director 
Molly Masich, 

Director ofAPA Services 



Staff: 

Ruby Creech, 

Publications Coordinator 
Teresa Kilpatrick, 

Editorial Assistant 
Jean Shirley, 

Editorial Assistant 

This publication is printed on permanent, 
acid-free paper in compliance with 
G.S. 125-11.13. 



ISSUE CONTENTS 



I. EXECUTIVE ORDER 

Executive Order 53 504 

II. IN ADDITION 

Voting Rights Act 506 

HI. PROPOSED RULES 
Human Resources 

Facility Services 509 

Medical Assistance 513 

Insurance 
Life and Health Division 525 

Justice 
State Bureau of Investigation .... 530 

Licensing Boards 

Barber Examiners 563 

Medical Examiners 565 

Physical Therapy Examiners .... 566 

Public Education 
Elementary and Secondary 

Education 540 

Transportation 
Motor Vehicles, Division of ... . 542 



IV. RRC OBJECTIONS ........ 567 



V. CONTESTED CASE DECISIONS 

Index to ALJ Decisions 574 

Text of Selected Decisions 
93 EHR 1781 581 

VI. CUMULATIVE INDEX 586 



NORTH CAROLINA REGISTER 

Publication Schedule 

(April 1994 - January 1995) 



Volume 

and 

Issue 

Number 


Issue 
Date 


Last Day 

for 

Filing 


Last Day 
for Elec- 
tronic 
Filing 


Earliest 

Date for 

Public 

Hearing 

75 days 

from 

notice 


* End of 

Required 

Comment 

Period 

30 days 

from 

notice 


Last Day 

to Submit 

toRRC 


** Earliest 

Effective 

Date 


9:1 


04/04/94 


03/11/94 


03/18/94 


04/19/94 


05/04/94 


05/20/94 


07/01/94 


9:2 


04/15/94 


03/24/94 


03/31/94 


05/02/94 


05/16/94 


05/20/94 


07/01/94 


9:3 


05/02/94 


04/11/94 


04/18/94 


05/17/94 


06/01/94 


06/20/94 


08/01/94 


9:4 


05/16/94 


04/25/94 


05/02/94 


05/31/94 


06/15/94 


06/20/94 


08/01/94 


9:5 


06/01/94 


05/10/94 


05/17/94 


06/16/94 


07/01/94 


07/20/94 


09/01/94 


9:6 


06/15/94 


05/24/94 


06/01/94 


06/30/94 


07/15/94 


07/20/94 


09/01/94 


9:7 


07/01/94 


06/10/94 


06/17/94 


07/18/94 


08/01/94 


08/22/94 


10/01/94 


9:8 


07/15/94 


06/23/94 


06/30/94 


08/01/94 


08/15/94 


08/22/94 


10/01/94 


9:9 


08/01/94 


07/11/94 


07/18/94 


08/16/94 


08/31/94 


09/20/94 


11/01/94 


9:10 


08/15/94 


07/25/94 


08/01/94 


08/30/94 


09/14/94 


09/20/94 


11/01/94 


9:11 


09/01/94 


08/11/94 


08/18/94 


09/16/94 


10/03/94 


10/20/94 


12/01/94 


9:12 


09/15/94 


08/24/94 


08/31/94 


09/30/94 


10/17/94 


10/20/94 


12/01/94 


9:13 


10/03/94 


09/12/94 


09/19/94 


10/18/94 


11/02/94 


11/21/94 


01/01/95 


9:14 


10/14/94 


09/23/94 


09/30/94 


10/31/94 


11/14/94 


11/21/94 


01/01/95 


9:15 


11/01/94 


10/11/94 


10/18/94 


11/16/94 


12/01/94 


12/20/94 


02/01/95 


9:16 


11/15/94 


10/24/94 


10/31/94 


11/30/94 


12/15/94 


12/20/94 


02/01/95 


9:17 


12/01/94 


11/07/94 


11/15/94 


12/16/94 


01/03/95 


01/20/95 


03/01/95 


9:18 


12/15/94 


11/22/94 


12/01/94 


12/30/94 


01/17/95 


01/20/95 


03/01/95 


9:19 


01/03/95 


12/08/94 


12/15/94 


01/18/95 


02/02/95 


02/20/95 


04/01/95 


9:20 


01/17/95 


12/21/94 


12/30/94 


02/01/95 


02/16/95 


02/20/95 


04/01/95 



This table is published as a public service, and the computation of time periods are not to be deemed binding 
or controlling. Time is computed according to 26 NCAC 2B .0103 and the Rules of Civil Procedure, Rule 
6. 

* An agency must accept comments for at least 30 days after the proposed text is published or until the date 
of any public hearing, whichever is longer. See G.S. 150B-21. 2(f) for adoption procedures. 
** The "Earliest Effective Date " is computed assuming that the agency follows the publication schedule above, 
that the Rules Review Commission approves the rule at the next calendar month meeting after submission, and 
that RRC delivers the rule to the Codifier of Rules five (5) business days before the 1st business day of the next 
calendar month. 



Revised 03/94 



EXECUTIVE ORDER 



EXECUTIVE ORDER NO. 53 

NORTH CAROLINA INTERAGENCY 

COUNCIL FOR COORDINATING 

HOMELESS PROGRAMS 

WHEREAS, the problem of homelessness denies 
a segment of our population their basic human 
need for adequate shelter; and 

WHEREAS, several State agencies offer pro- 
grams and services for homeless persons; and 

WHEREAS, to combat the problem of 
homelessness most effectively, it is critical that 
these agencies coordinate program development 
and delivery of essential services. 

NOW, THEREFORE, by the power vested in me 
as Governor by the laws and Constitution of the 
State of North Carolina, IT IS ORDERED: 

Section 1. Establishment. 

The North Carolina Interagency Council for 
Coordinating Homeless Programs (the 
"Interagency Council") is hereby established. 

Section 2. Membership. 



The Interagency Council shall consist of the 
Deputy Secretary of the North Carolina 
Department of Human Resources and twenty-three 
additional members who shall be appointed by the 
Governor from the following public and private 
agencies and categories of qualifications: 

(a) One member from the Department of 
Administration. 

(b) One member from the Housing Finance 
Agency. 

(c) One member of the Office of State 
Planning. 

(d) One member of the Department of 
Community Colleges. 

(e) One member of the Department of Crime 
Control and Public Safety. 

(f) One member of the Department of 
Cultural Resources. 

(g) One member of the Department of 
Commerce. 

(h) One member of the Department of 
Environment, Health, and Natural 
Resources. 

(i) One member of the Department of Hu- 
man Resources. 

(j) One member of the State Board of Edu- 
cation or a member from the Department 
of Public Instruction. 



(k) One member of the Department of Insur- 
ance. 

(1) One member of the Department of Trans- 
portation. 

(m) One local government official. 

(n) Two members from a non-profit agency 
concerned with housing issues and the 
homeless. 

(o) Two members from a non-profit agency 
concerned with the provision of support- 
ive services to the homeless. 

(p) Two homeless or formerly homeless 
persons. 

(q) Two members from the private sector. 

(r) One member of the North Carolina Sen- 
ate. 

(s) One member of the North Carolina 
House of Representatives. 

Section 3. Chair and Terms of Membership. 

The Deputy Secretary of the Department of 
Human Resources shall serve as Chair of the 
Interagency Council during his or her term of 
employment in that position. Initial terms of 
membership for the other members of the Inter- 
agency Council shall be staggered with eleven 
members serving two years and eleven members 
serving three years. Each appointment thereafter 
shall be for a term of two years. 

Section 4. Meetings. 

The Interagency Council shall meet quarterly and 
at other times at the call of the Chair or upon 
written request of at least (5) five of its members. 

Section 5. Functions. 

(a) The Interagency Council shall advise the 
Governor and Secretary of the Department of 
Human Resources on issues related to the prob- 
lems of persons who are homeless or at risk of 
becoming homeless, identify available resources 
throughout the State and provide recommendations 
for joint and cooperative efforts in carrying out 
programs to meet the needs of the homeless. 

(b) The Interagency Council shall set short term 
and long term goals and determine yearly priori- 
ties. 

(c) The Interagency Council shall submit an 
annual report to the Governor, by November 1 , on 
its accomplishments. 

Section 6. Travel and Subsistence Expenses. 

Members of the Interagency Council shall re- 
ceive necessary travel and subsistence expenses 
from the Department of Human Resources in 



NORTH CAROLINA REGISTER 



July 15, 1994 



504 



EXECUTIVE ORDER 



accordance with the provisions of G.S. 120-3.1 or 
138-5. 

Section 7. Staff Assistance. 

The Office of Economic Opportunity of the 
Department of Human Resources shall provide 
administrative and staff support services required 
by the Interagency Council. 

This Executive Order shall be effective immedi- 
ately. 

Done in the Capital City of Raleigh, North 
Carolina, this the 20th day of June, 1994. 



SOS 9:8 NORTH CAROLINA REGISTER July IS, 1994 



IN ADDITION 



This Section contains public notices that are required to be published in the Register or have been 
approved by the Codifier of Rules for publication. 



U.S. Department of Justice 

Civil Rights Division 

DLP:MAP:RJD:lss:emr Voting Section 

DJ 166-012-3 P.O. Box 66128 

94-1762 Washington, DC. 20035-6128 

June 16, 1994 

DeWitt F. McCarley, Esq. 

City Attorney 

P. O. Box 7207 

Greenville, North Carolina 27835-7207 

Dear Mr. McCarley: 

This refers to twelve annexations [Ordinance Nos. 2744 (1993), and 7-10, 24-26 and 37-40 1994)] 
and the designation of the annexed areas to single-member districts for the City of Greenville in Pitt County, 
North Carolina, submitted to the Attorney General pursuant to Section 5 of the Voting Rights Act of 1965, 
as amended, 42 U.S.C. 1973c. We received your submission on April 18, 1994. 

The Attorney General does not interpose any objection to the specified changes. However, we note 
hat Section 5 expressly provides that the failure of the Attorney General to object does not bar subsequent 
itigation to enjoin the enforcement of the changes. See the Procedures for the Administration of Section 5 
(28 C.F.R. 51.41). 



Sincerely, 

Deval L. Patrick 

Assistant Attorney General 

Civil Rights Division 



By: 



Steven H. Rosenbaum 
Chief, Voting Section 



:* NORTH CAROLINA REGISTER July 15, 1994 506 



IN ADDITION 



U.S. Department of Justice 
Civil Rights Division 
Office of the Assistant Attorney General Washington, DC. 20035-6128 



June 23, 1994 

Michael Crowell, Esq. 
Tharrington, Smith & Hargrove 
R O. Box 1151 
Raleigh, North Carolina 27602-1151 

Dear Mr. Crowell: 

This refers to the change in the method of electing city councilmembers from at large to two double- 
member districts and one at large, the districting plan and an implementation schedule for the City of 
Laurinburg in Scotland County, North Carolina, submitted to the Attorney General pursuant to Section 5 of 
the Voting Rights Act of 1965, as amended, 42 U.S.C. 1973c. We received your submission on May 17, 
1994. 

This also refers to your request that the Attorney General reconsider and withdraw the April 25, 1994, 
objection under Section 5 to the city's adoption of an annexation (Ordinance No. 0-1994-01). We received 
your request on May 17, 1994. 

As noted in our objection letter, the annexation would reduce significantly the black proportion of the 
city's total population. Our analysis showed that, in the context of racially polarized voting, the existing at- 
large method of election for the city council would not fairly reflect black voting strength in the expanded city, 
and accordingly, an objection was interposed. See City of Richmond v. United States . 422 U.S. 358 (1975). 

Under the proposed election system, city councilmembers would be elected from two double-member 
districts, one of which has a black population of 62.9 percent. Our analysis shows that this system would 
fairly recognize black voting strength in the expanded city and therefore resolves our Section 5 concerns. 

Accordingly, I hereby withdraw the objection to the annexation identified by Ordinance No. 0-1994-01 
and interpose no objection to the change in method of election, districting plan and implementation schedule. 
However, we note that Section 5 expressly provides that the failure of the Attorney General to object does 
not bar subsequent litigation to enjoin the enforcement of the changes. In addition, as authorized by Section 
5, we reserve the right to reexamine this submission if additional information that would otherwise require 
an objection comes to our attention during the remainder of the sixty-day review period. See the Procedures 
for the Administration of Section 5 (28 C.F.R. 51.41 and 51.43). 

Since the Section 5 status of the proposed annexation is at issue in Speller v. City of Laurinburg , No. 
3:93 CV 365, we are providing a copy of this letter to the court and counsel of record in that case. 

Sincerely, 

Deval L. Patrick 
Assistant Attorney General 
Civil Rights Division 
cc: Honorable William L. Osteen, Jr. 
United States District Judge 

Counsel of Record 



507 9:8 NORTH CAROLINA REGISTER July 15, 1994 



IN ADDITION 



U.S. Department of Justice 

Civil Rights Division 

DLP:MAP:RJD:emr Voting Section 

DJ 166-012-3 P.O. Box 66128 

94-1079 Washington, DC. 20035-6128 

94-1984 

June 27, 1994 

David A. Holec, Esq. 

City Attorney 

P. O. Box 1388 

Lumberton, North Carolina 28359 

Dear Mr. Holec: 

This refers to the February 28, 1994, annexation (Hammonds Property), the April 25, 1994, 
annexation (Meadow Road Corridor) and the designation of the annexed areas to a single-member district for 
the City of Lumberton in Robeson County, North Carolina, submitted to the Attorney General pursuant to 
Section 5 of the Voting Rights Act of 1965, as amended, 42 U.S.C. 1973c. We received your submission 
of the Hammonds Property annexation on March 7, 1994, and your related submission of the Meadow Road 
Corridor annexation on April 29, 1994. 

The Attorney General does not interpose any objection to the specified changes. However, we note 
that Section 5 expressly provides that the failure of the Attorney General to object does not bar subsequent 
litigation to enjoin the enforcement of the changes. See the Procedures for the Administration of Section 5 
(28 C.F.R. 51.41). 



Sincerely, 

Deval L. Patrick 

Assistant Attorney General 

Civil Rights Division 



By: 



Steven H. Rosenbaum 
Chief, Voting Section 



_' 



NORTH CAROLINA REGISTER July 15, 1994 508 



PROPOSED RULES 



TITLE 10 - DEPARTMENT OF HUMAN RESOURCES 

I\otice is hereby given in accordance with G.S. 150B-21.2 that the Division of Facility Services intends to 
amend rule cited as 10 NCAC 3R .3030. 

1 he proposed effective date of this action is October 1, 1994. 

1 he public hearing will be conducted at 10:00 a.m. on August 4, 1994 at the Council Building, 701 Barbour 
Drive, Room 201, Raleigh, N.C 27603. 

Ixeason for Proposed Action: To adopt as a permanent rule the temporary rule adopted July 1, 1994, which 
amend the Certificate of Need facility and service need determinations set forth in the 1994 State Medical 
Facilities Plan. 

(comment Procedures: All written comments must be submitted to Jackie Sheppard, APA Coordinator, 
Division of Facility Services, P.O. Box 29530, Raleigh, N.C. 27626-0530 no later than August 16, 1994. 
Oral comments may be made at the hearing. 

Editor's Note: This Rule was filed as a temporary amendment effective July 1, 1994 for a period of 180 
days or until the permanent rule becomes effective, whichever is sooner. 

CHAPTER 3 - FACILITY SERVICES 

SUBCHAPTER 3R - CERTIFICATE OF NEED REGULATIONS 

SECTION .3000 - STATE MEDICAL FACDLFITES PLAN 

.3030 FACILITY AND SERVICE NEED DETERMINATIONS 

Facility and service need determinations are shown in Items (1) - (16) of this Rule. The need determinations 
shall be revised continuously throughout 1994 pursuant to 10 NCAC 3R .3040. 

(1) Category A. Acute Health Service Facilities. It is determined that there is no need for additional 
acute care beds and no reviews are scheduled. 

(2) Category B. Long-Term Nursing Facility Beds 







Number of Nursing 


County 


HSA 


Beds Needed 


Brunswick 


V 


40 


Pender 


V 


20 


Greene 


VI 


10 


Lincoln 


III 


30 



(3) Category C. 

(a) Psychiatric Facility Beds. It is determined that there is no need for additional psychiatric beds and 
no reviews are scheduled. 

(b) Intermediate Care Facilities for Mentally Retarded Beds. 



509 



9:8 



NORTH CAROLINA REGISTER 



July 15, 1994 



PROPOSED RULES 



Counties 


HSA 


Need 
Determination 






Child 




Adult 


Buncombe, Madison, Mitchell, Yancey 


I 







6 


Gaston, Lincoln 


III 







6 


Rowan, Iredell, Davie 


in 


12 







Orange, Person, Chatham 


IV 


6 







Halifax 


VI 


12 







Pitt 


VI 


12 







Beaufort, Washington, Tyrrell, Hyde, 
Martin 


VI 


6 




6 


Pasquotank, Chowan, Perquimans, 
Camden, Dare, Currituck 


VI 







18 



(c) Chemical Dependency Treatment Beds. It is determined that there is no need for additional 
chemical dependency treatment beds and no reviews are scheduled. 

(4) Category D. End-Stage Renal Disease Treatment Facilities. Need for end-stage renal dialysis 
facilities or stations is determined as is provided in 10 NCAC 3R .3032. 

(5) Category E. Inpatient Rehabilitation Facility Beds. It is determined that there is no need for 
additional rehabilitation beds and no reviews are scheduled. 

(6) Category F. Ambulatory Surgery Operating Rooms. It is determined that there is no need for 
additional ambulatory surgery operating rooms and no reviews are scheduled, except that a Rural 
Primary Care Hospital designated by the N.C. Office of Rural Health Services pursuant to Section 
1820(f) of the Social Security Act may apply for a certificate of need to convert existing operating 
rooms for use as a freestanding ambulatory surgical facility. 

(7) Category H. New Home Health Agencies or Offices. 







Number of Agencies 


County 


HSA 


or Offices Needed 


Iredell 


m 


1 


Mecklenburg 


III 


2 


Durham 


IV 


1 


Cumberland 


V 


1 



(8) Category J. Open heart surgery services. It is determined that there is no need for additional open 
heart surgery services and no reviews are scheduled; except that a health service facility that 
currently provides these services may apply for a certificate of need to expand its existing services 
to meet specific needs if utilization of the health service facility's existing open heart surgery services 
exceeds 80% of capacity. 

(9) Category J. Heart-Lung Bypass Machines. It is determined that there is no need for additional 
heart-lung bypass machines and no reviews are scheduled; except that a health service facility that 
currently provides open heart surgery services may apply for a certificate of need to acquire 
additional heart-lung bypass machinery if the existing heart-lung machinery used by the health service 
facility is utilized at or above 80% of capacity. 

(10) Category J. Cardiac Angioplasty Equipment. It is determined that there is no need for additional 
cardiac angioplasty equipment and no reviews are scheduled; except that a health service facility that 



6 



NORTH CAROLINA REGISTER 



July 15, 1994 



510 



PROPOSED RULES 



(11) 



(12) 



(13) 



(14) 



(15) 



(16) 



(a) 



(b) 



currently provides cardiac angioplasty services may apply for a certificate of need to acquire 

additional cardiac angioplasty equipment if utilization of cardiac angioplasty equipment used by the 

health service facility exceeds 80% of capacity. 

Category J. Cardiac Catheterization Equipment. It is determined that there is no need for additional 

fixed or mobile cardiac catheterization equipment and no reviews are scheduled; except that a health 

service facility that currently provides cardiac catheterization services may apply for a certificate of 

need to acquire additional cardiac catheterization equipment if utilization of cardiac catheterization 

equipment used by the health service facility exceeds 80 % of capacity. 

Category J. Solid organ transplant services shall be developed and offered only by academic medical 

center teaching hospitals as designated in 10 NCAC 3R .3050(a)(3). It is determined that there is 

no need for new solid organ transplant services and no reviews are scheduled. 

Category J. Bone Marrow Transplantation Services. It is determined that allogeneic bone marrow 

transplantation services shall be developed and offered only by academic medical center teaching 

hospitals as designated in 10 NCAC 3R .3050(a)(3). It is determined that there is no need for 

additional allogeneic or autologous bone marrow transplantation services and no reviews are 

scheduled. 

Category J. Gamma Knife Equipment. It is determined that there is no need for gamma knife 

equipment and no reviews are scheduled. 

Category J. Positron Emission Tomography Scanner. It is determined that there is no need for 

additional positron emission tomography scanners for purposes other than research and no reviews 

are scheduled. 

Category L. 

New Hospice Home Care Programs. 







Number of New 






Hospice 


Home Care 


County 


HSA 


Programs Needed 


Graham 


{ 




4- 


McDowell 


I 




4- 


Swain 


i 




4- 


Cumberland 


V 




1 


Robeson 


V 




1 




¥4 




i 




Hyde 


VI 




1 


Onslow 


VI 




1 


Wayne 


VI 




1 



New Hospice Inpatient Beds (Single Counties). It is determined that the following single counties 
have a need for six or more new Hospice Inpatient Beds: 



County 



HSA 



Number of New 

Hospice Inpatient 

Beds Needed 



Forsyth 
Wake 



II 

IV 



8 

7 



511 



9:8 



NORTH CAROLINA REGISTER 



July 15, 1994 



PROPOSED RULES 



(c) New Hospice Inpatient Beds (Contiguous Counties). It has been determined that any combination 
of two or more contiguous counties taken from the following list shall have a need for new hospice 
inpatient beds if the combined bed deficit for the grouping of contiguous counties totals six or more 
beds. Each county in a grouping of contiguous counties must have a deficit of at least one and no 
more than five beds. The need for the grouping of contiguous counties shall be the sum of the 
deficits in the individual counties. For purposes of this rule, "contiguous counties" shall mean a 
grouping of North Carolina counties which includes the county in which the new hospice inpatient 
facility is proposed to be located and any one or more of the immediately surrounding North 
Carolina counties which have a common border with that county, even if the borders only touch 
at one point. No county may be included in a grouping of contiguous counties unless it is listed 
in the following table: 



County 


HSA 


Hospice Inpatient 
Bed Deficit 


Alexander 




1 


Ashe 




1 


Avery 




1 


Burke 




1 


Madison 




1 


Polk 




1 


Rutherford 




2 


Transylvania 




1 


Watauga 




1 


Wilkes 




1 


Yancey 




1 


Alamance 


II 


5 


Caswell 


II 


1 


Davidson 


II 


2 


Guilford 


II 


1 


Rockingham 


II 


3 


Stokes 


II 


1 


Surry 


II 


2 


Cabarrus 


III 


2 


Gaston 


III 


4 


Iredell 


III 


3 


Mecklenburg 


III 


4 


Rowan 


III 


3 


Stanly 


III 


1 


Union 


III 


2 



8 



NORTH CAROLINA REGISTER 



July 15, 1994 



512 



PROPOSED RULES 







Hospice Inpatient 


County 


HSA 


Bed Deficit 


Chatham 


IV 


2 


Durham 


IV 


3 


Johnston 


IV 


1 


Lee 


IV 


1 


Bladen 


V 


1 


Brunswick 


V 


2 


Columbus 


V 


2 


Harnett 


V 


1 


Moore 


V 


2 


Pender 


V 


1 


Richmond 


V 


1 


Scotland 


V 


1 


Bertie 


VI 


2 


Duplin 


VI 


1 


Greene 


VI 


2 


Hertford 


VI 


2 


Nash 


VI 


1 


Northampton 


VI 


1 


Onslow 


VI 


1 


Pitt 


VI 


1 


Wilson 


VI 


1 



Statutory Authority G.S. 13 1E-1 76(25); 131E-177(1); 131E-1 83(b). 



TITLE 10 - DEPARTMENT 
OF HUMAN RESOURCES 

/V otice is hereby given in accordance Math G.S. 
150B-21.2 that the DHR/Division of Medical 
Assistance intends to adopt rules cited as 10 
NCAC 26H .0210 - .0222 and repeal 26H .0201 - 
.0209. 

1 he proposed effective date of this action is 
October 1, 1994. 

1 he public hearing will be conducted at 1:30 
p.m. on August 1, 1994 at the North Carolina 



Division of Medical Assistance, 1985 Umstead 
Drive, Raleigh, NC 27603. 

MXeason for Proposed Action: These rules will 
repeal the existing Hospital Inpatient Reimburse- 
ment Plan and establish the Diagnosis Related 
Groups Hospital Inpatient Plan. 

Comment Procedures: Written comments con- 
cerning these rules must be submitted by August 
15, 1994, to: The Division of Medical Assistance, 
1985 Umstead Drive, Raleigh, NC 27603 ATTN: 
Clarence Ervin, APA Coordinator. Oral comments 
may be presented at the hearing. In addition, a 
fiscal impact statement is available upon request 



513 



9:8 



NORTH CAROLINA REGISTER 



July 15, 1994 



PROPOSED RULES 



from the same address. 

CHAPTER 26 - MEDICAL ASSISTANCE 

SUBCHAPTER 26H - REIMBURSEMENT 
PLANS 

SECTION .0200 - HOSPITAL 
INPATIENT REIMBURSEMENT PLAN 

.0201 REIMBURSEMENT PRINCIPLES 

Effective July 1, 10 8 2 and each July 1 thereafter, 
all hospitals participating in the North Carolina 
Medical Assistance Program will be reimbursed 
for inpatient service s based on all inclusive pro 
apective per diem rates. 



Authority G.S. 108A-25(b); 108A-54; 108A-55; 
S.L. 1985, c. 479, s. 86; 42 CER. 447, Subpart 
C 

.0202 RATE SETTING METHODS 

(a) An annual rate is dete r mined for each ho s pi 



tal to be effective for datea of service beginni ng 
each July 1. — Rate s arc derived from cost reports 



for a base year period or from previous appeal 
decisions. The — initial — base year — is — the 



cost reporting period ending in 1981. — Services 



provided prior to July 1, 19 8 6 arc reimbur s ed at 



rates not to exceed the rate s effective July 1, 19 8 5. 

fb) — The prospective rate i s the s um of the 

operating rate component and the capital rate 



component. — The capital rate component is the 



higher of the base year capital per diem cost or the 
mo s t recent capital rate as adju s ted upon previou s 



appeal. — The base year capital cost per diem i s 



computed by dividing total capital co s ts allocated 



to inpatient services by total inpatient days. — The 



operating — fate — component — is — determine d — by 



inflating the Medicaid base year operating cost per 



capital co3t per diem from the total base year 
Medicaid cost per diem. Base year Medicaid costs 



ancillary s ervices, malpractice insurance, interns' 



and residents' s ervices, and other covered inpatient 



s ervices. 



diem to the rate year. — The base year operating 



cost per diem i s computed by subtracting the 



include — inpatient — routine, — special — care, — and 



{e) Inflation factors — for the operating — fate 



somponcnts ore based on the National Hospital 
vlarkot Basket Index and the most recent actual 



md projected cost data available from the North 



Carolina Office of State Budget and Management, 
(d) The prospective rate for a new hospital is sot 
t t the lower of: 



F 



ft) The all ho s pital mean rate; or 

(3) Seventy five percent of the hospital' s 

projected — average — gro ss — inpatient 
revenue per day during the fir s t year of 
operations. 
This provision applies to a ho s pital if a cost report 
covering at least 12 months of normal operations 
has not been filed. — This rate i s the base year rate 
until a desk reviewed cost report covering at least 
12 months of normal operations i s available. 

(e) Out of state hospital services arc reimbursed 
according to the rates established by the Medicaid 
Agency — of the State in which the hospital — is 
located. — If a usable rate cannot be obtained, 
s ervices are reimbur s ed at 75 percent of billed 
charges — &f — a — negotiated — fate — not — te — exceed 
reasonable cost. 

(f) The initial base year for psychiatric hospitals 
is the cost reporting period ending in 19 8 9, or 
1990 if a full year co s t report i s available as of 
April 1, 1991. — The total base year per diem cost 
for a hospital is limited to the median per diem 
cost in the base year of all psychiatric hospitals. 
The — limit docs — not apply to — or reduce any 
amortization of s tart up co s ts of an individual 
ho s pital. — State operated ho s pital s are not included 
m the calculation of the median per diem cost 

fg) — To assure compliance with the separate 
upper payment limit for State operated facilities, 
the — hospitals — operated — by — the — Department — ef 
Human Resources and all the primary affiliated 
teaching hospitals for the University of North 
Carolina Medical Schools, will bo reimbursed their 



reasonable co s ts in accordance with the 



provi s ion s 



of the Medicare Provider Reimbur s ement Manual. 



of 



fb) — This plan intends to encourage the use 
lower cost — hospitals fef — routine — illnesses- 
Hospitals with rates at or below the all hospital 
mean will be reimbursed at the full prospective 

rate without day limits. Hospitals with rates 

higher than the mean rate of all hospitals will be 
reimbursed at the full prospective rate up to an 
annual days limit. — Days in excess of the limit will 
be reimbursed at the mean rate of hospitals below 

the — all hospital — mean. This — reimbursement 

limitation will be eliminated for claims paid in 
April, 1991 and thereafter if and when: 

ft) th-e Health Care Financing 

Administration, — UrS: — Department — ef 
Health and Human Services, approves 
amendments submitted to HCFA by the 
Director of the Divi s ion of Medical 
Assistance on or about March 1 4 , 1991 
as ffMA 91 10 and IMA 91 11, 
wherein the Director proposes 



NORTH CAROLINA REGISTER 



July 15, 1994 



514 



PROPOSED RULES 



m- 



amendment — ef- — the — State — Plan — to 
eliminate the "Annual Days Limit" to 
the Plan, and 

the Director of the Divi s ion of Medical 
Assistance — determines — that — sufficient 



fund s 



^ti4e 



are available pur s uant to 
.0206(b)(3) of this Section or otherwise 
for this purpose. 

Authority G.S. 108A-25(b); 108A-54; 108A-55; 
S.L. 1985, c. 479, s. 86; 42 C.F.R. 447, Subpart 
C. 

.0203 COST REPORTING AND AUDITING 

(a) On or before December — h — t984 — eaeh 

hospital is required to s end to the Division of 
Medical Assistance one copy of its fiscal year 
1982 budget and any supplementary materials as 
submitted to Blue Cross and Blue Shield of North 
Carolina. 

(b) An annual cost report mu s t be filed with the 
Medicare — Intermedi ary; — B4«e — Cro ss — and — Bhie 
Shield of North Carolina, in accordance with all 
standards, principles, and time scheduler required 
by the Common Mcdicarc/Mcdicaid Audit. 

Authority G.S. 108A-25(b); 108A-54; 108A-55; 
S.L. 1985, c.479, s. 86; 42 C.F.R. 447, Subpart 
C. 



,0204 



ADMINISTRATIVE 
RECONSIDERATION REVTEWS 



•(ft) Reconsideration reviews ef- rate 

determinations will be processed in accordance 
with the provisions of 10 NCAC 26K. — Requests 
for reconsideration reviews mu3t be submitted to 



the Di 



of Medical Assistance within 60 days 



division oT Medical Assistance within 
after rate notification, unless unexpected conditions 
causing intense financial hardship ari s e, in which 
case a reconsideration review may be considered 
at any time. 

(b) — Operating rate reconsideration reviews are 
considered — only — en — the — basis — e# — the — actual 
additional cost of essential new services or patient 
mix changes incurred since the base year. 

(e) Capital rate reconsideration reviews arc 

considered only for the additional cost of now 
construction, renovations and equipment, consis 
tent — with the — Certificate of Need — approval — if 
required. 

(d) A hospital's adjusted rate for one or more of 
the factors cited in the Paragraph s (a) — (c) of thi s 
Rule cannot — exceed — a rate limit computed by 
applying the methods described in Rule .0202(b) 
and (c) of this Subchapter to the hospital's allow 



able Medicaid cost in the mo3t recent annual cost 
report available. 

(c) Hospital s that serve a di s proportionate share 
of low income patients arc eligible to receive rat e 
adjustments. — The cost report data and financial 
information that i s required in order to qualify a s 
a disproportionate share hospital effective April 1, 
1991 i s based on the fiscal year ending in 1989 for 
each hospital, as submitted to the Divioion of 
Medical Assistance on or before April 1, 1991. 
The cost report data and financial information to 
qualify as a disproportionate share hospital effec - 
tive July 1 , 1991 i s based on the fiscal year ending 
in 1990 for each ho s pital, as submitted to the 
Division — of Medical — Assistance — ©a — or before 
September 1, 1991. — In subsequent years, qualifi - 
cation s effective July 1 of any particular year ore 
based on each hospital's fiscal year ending in the 
preceding calendar year. — The patient dnyo, coots, 
revenues, or charges related to nursing facility 
services, swing bod services, home health service s , 
outpatient services, or any other s ervice that is not 
a hospital inpatient s ervice, cannot be used to 
qualify 1 for disproportionate share status. A hospi - 
tal is deemed to be a di s proportionate share hospi 
tal if the hospital has at least 2 obstetricians with 
staff privileges at the hospital who have agreed to 
provide obstetric s ervices to individual s eligible for 
Medicaid. — In the case of a ho s pital located in a 
rural area, — the term obstetrician includes any 
physician with staff privileges at the hospital to 
perform non emergency obstetric procedures. Thi s 
requirement does not apply to a hospital which did 
not offer non emergency obstetric services as of 
December 21,1 9 8 7 or to a hospital that prodomi 
nantly servos individuals under 1 8 years of age; 

KKtQ 

(^ the hospital's Medicaid inpatient utiliza 

tion rate, — defined as the percentag e 
resulting from dividing Medicaid pa 
ticnt days by total patient days, is at 
least one standard deviation above the 
mean Medicaid inpatient utilization rate 
for all hospital s that receive Medicaid 
payments in the state; or 

(3) the — ho s pital' s — low income — utilization 

rate exceeds 25 percent. The low 

income utilization rate is the sum of: 
(A) — the ratio of the sum of Medicaid 
inpatient rovenuoo plus cash suboidioo 
r eceived from — the State and local 

governments, divided by — the 

hospital's total patient revenues; and 
(B) — the ratio of the hospital's gross inpa 
ticnt charges for charity care less the 



515 



9:8 



NORTH CAROLINA REGISTER 



July 15, 1994 



PROPOSED RULES 



cash subsidies for inpatient care ro 
ooivod from the State and local gov 
ommcntfl, divided by the hospital's 
total inpatient chargca; or 

(3) the sum of the ho s pital's — Medicaid 

revenues, bad debts allowance net of 
rocovcriofl, and charity care exceed s 20 
percent of gross patient revenues; or 

{4) The hospital, in a ranking of hospitals 

in the State, from mo s t to least in num 
bcr of Medicaid patient day s provided, 
i s among the top group that accounts 
for 50% of the total Medicaid patient 
day s provided by all ho s pital s in the 
State; or 

{§) P s ychiatric Hospitals operated by the 

North Carolina Department of Human 
Resources, Divi s ion of Mental Health, 
Developmental Disabilities, S ub s tance 
Abuse Service s (DMH/DD/SAS). 
(f) The rate adju s tment for a di s proportionate 
share ho s pital is 2.5 percent plu s one fourth of one 



percent for each percentage point that a hospital's 
Medicaid inpatient utilization rate exceeds one 



s tandard deviation of the mean Medicaid inpatient 
utilization rate in the State. — The rate adjustment is 



applied to a ho s pital' s payment rate exclu s ive of 



any previou s disproportionate share adjustments, 
(g) For hospital s eligible under Paragraph (c) of 



this Rule, an additional payment adjustment may 
be made to each ho s pital for services provided in 



the month s of April, May, and June, 1991 equal to 



the product of the ratio of each hospital's total 



Medicaid inpatient day s divided by the total Mod 



icaid inpatient day s provided by all di s proportion 



ate shore hospitals in the state during their fiscal 



years ending in 19 8 9 mult i plied by an amount of 
Funds to bo determined by the Director of the 
Division of Medical Assistance, but not to exceed 



me hundred forty million dollars ($1 4 0,000,000). 



Each hospital's payment adjustment will be paid 



retrospectively in up to three installments. — An 



ldditional payment adju s tment by this methodology 



nay bo made for services provided in the month s 



otal inpatient days as filed in the hospital cost 



rf July, August, September, October, November 
uid December, 1991 based on the Medicaid and 



sports for fiscal year s ending in 1990. The 



imount of funds to be determined by the Director 



i hall not exceed one hundred sixty million dollar s 
$160,000,000). 



(h) For hospitals eligible under Paragraph (o) of 
hia rule, an additional payment adjustment may be 



nadc after the effective date of this rule to each 



tospital for services provided in the month s of 



January, February, — March, April, May and June 
1992 based on the Medicaid and total inpatient 
days as filed in hospital cost reports for fiscal 
years ending in 1990, by u s e of the methodology 
described Paragraph (g) of thi s Rule. The amount 
of funds to be determined by the Director shall not 

exceed $160,000,000. Each hospital payment 

adju s tment will bo paid retrospectively in up to 
three installments. — An additional payment adjust 
ment by thi s methodology will be made for s ervic - 
es provided in the months of July, August, and 
September 1992 based on the Medicaid and total 
inpatient days as filed in hospital cost reports for 
fi s cal years ending in 1991. The amount of funds 
to be determined by the director s hall not exceed 
$ 8 0,000,000. 

(i) Effective October 1, 1992, ho s pitals eligible 
under Subparagraph (c)(5) of thi s Rule will be 
eligible for disproportionate share payments, in 
addition to other payments made under the North 
Carolina Medicaid Ho s pital reimbursement mcth 
odology, from a disproportionate share pool under 
the circumstance s pecified in this Paragraph: 

fH A DMH/DD/SA S operated psychiatric 

ho s pital will receive a monthly dispro 
portionato share payment based on the 
monthly bed day s of s ervice to low 
income per s on s of each DMH/DD/SAS 
hospital divided by the total monthly 
bod day s of s erviee to low income 
per s on s of all DMH/DD/SAS hospitals 
times allocated funds. 

{3) This payment s hall be in addition to the 

disproport i onate share payments made 
in accordance with (f), (g), and (j) 
under Administrative Appeals of this 
plan. — However, DHR operated p s ychi 
atric hospital s are not required to quali 
fy under the requirement of Subpara 
graphs (e)(1) through ( 4 ) of this Rule. 

(3) The amount of allocated funds shall be 

determined by the Director of the Divi 
sion of Medical Assi s tance, but not to 
exceed the quarterly federal allotment 
of fund s (plus appropriate non federal 
match) earmarked for disproportionate 
s hare hospital payments less payments 
made under (c)(1) through ( 4 ) and (j) 
under admini s trative appeal s divided by 
three. — In the preceding formula, -bed 
days of services to low income persons 
i s defined as the number of bed days 
provided to individuals that have been 
determined by the ho s pital as patients 
that do not possess the financial ro 



1'8 



NORTH CAROLINA REGISTER 



July 15, 1994 



516 



PROPOSED RULES 



sources to pay portions or all charges 

associated with care provided. — tew 

income persons include a person that 

has — been — determine d — eligible — fef 

Medical Assistance. — The count of bed 

days — u s ed — te — determin e — payment — is 

based — upon — the — month — immediately 

prior to the month that payments arc 

made. 

This — reimbursement — limitation — wiH — become 

effective on the date: — The Health Care Financing 

Administration, U.S. Department of Health and 

Human Services, approves amendment submitted 

to HCFA by the Director of the Division of 

Medical As s i s tance on or about December 3, 1992 

as ffilA 92 3 4 , where in the Director proposes 

amendment — ef- — fee — State — Plan — te — establish 

P s ychiatric — Ho s pital s — operated — by — the — North 

Carolina — Department — ef- — Human — Resources, 

Division — ef- — Mental — Health, — Developmental 

Disabilities, Sub s tance Abuse Services 

(DMH/DD/SAS) — as — Di s proportionate — Share 
Hospitals and method to determine payment. 

{j) — Except as otherwi s e s pecified in this Rule, 
rate adjustments arc considered based on the most 
recent — annual — eest — report, — audited — financial 
statements — when neces s ary and other required 
information as submitted by a hospital provider. 
An adjustment cannot be made if the necessary 
information i s not submitted or if the informa tiefl 
is incomplete or incorrect. — A rate adjustment can 
be applied retroactively to the most recent July 1 
effective date, but cannot be applied to previou s 
fi s cal year s . 

(k) For hospitals eligible under Paragraph (c), a 
payment — adjustment — is — available — fef — services 
involving exceptionally high co s ts or exceptionally 
long lengths of stay for patients under s ix year s of 
age: — A payment adjustment is available for all the 
other hospital s — fef — s«eh — s ervices — provided — te 
patients under one year of age. — A five percent 
increase above the normal payment amount (as 
described in Paragraph (f) of this Rule) will be 
provided — fef — the — inpatient — claims — with — billed 
charges in excess of fifty five thousand dollars 
($55,000) or with stays in excess of 65 days. — The 
fifty five thousand dollar ($55,000) threshold will 
be — increased — annually — by — the — inflation — factor 
described under Paragraph (c) of thi s Rule. — This 
provi s ion i s effective for dates of s ervice beginning 
July 1, 1991. 

0) — The disproportionate s hare payments and 
payment adjustments described in Paragraphs (f), 
(g)i — (h) — and — (j) — are — made — in addition to — the 
payments described in 10 NCAC 26H .0202 (a) 



0h 



Authority G.S. 108A-25(b); 108A-54; 108A-55; 
150B-11; S.L. 1985, c. 479, s. 86; 42 C.F.R. 447, 
Subpart C 

.0205 PAYMENT FOR LOWER 

THAN ACUTE LEVEL OF CARE 

{a) Day s for authorized s killed nuroing or 

intermediate oaro level of service rendered in ob 
acute care hospital will be rcimburoed at a rate 
equal to the average rate of all such Medicaid days 
based on rate s in effect for the long term earo plan 
year beginning each October 1 . 

{©) — Days for lower than acute level of care for 
ventilator dependent patients in s wing bed hospital s 
ef — that — have — been — down graded — through — fee 
utilization review proces s may be paid for up to 
1 80 days at a lower level ventilator dependent rate 
if the ho s pital i s unable to place the patient in a 
lower level facility. — An extension may bo granted 
if in the opinion of the Division of Medical 
Assistance the condition of the patient prevents 

acceptance — by — a — nursing — facility. A — s ingle 

all inclusive prospective per diem rate is paid, 
equal to the average rate paid to nuroing facilitie s 
for ventilator dependent s ervices. — The hospital 
mu s t actively seek placement of the patient in on 
appropriate facility. 

Authority G.S. 108A-25(b); 108A-54; 108A-55; 
S.L. 1985, c. 479, s. 86; 42 C.F.R. 447, Subpart 
C. 

.0206 PAYMENT ASSURANCE 

(a) The state will pay each hospital the amount 
determined for inpatient s ervices provided by the 
ho s pital according to the s tandards and methods set 



forth — in — this — Section. 



4a — aH — circumsta nces 



involving third party payment, Medicaid will be 

the payor of last resort. 
{b) If contributions arc made pursuant to 

General Statute 1 4 3 23.2 during calendar y ear 

1991, the Department has determined that it will 

u s e them as follow s : 

fT) fee — Department — wiH — pre s ent — fee 

contributed — funds — te — fee — federal 
government to be matched pursuant to 
federal financial participation rules. Th e 
total of the contributed and matched 
funds hereinafter will bo referred to o s 
the "Funds" to be disbur s ed in the 
order sot forth in this Rule. 

(3) the contributed funds will provide the 

total — non federal — share — of Medicaid 



517 



9:8 



NORTH CAROLINA REGISTER 



July 15, 1994 



PROPOSED RULES 



m- 



expenditures made with the Funds. 
-»p te forty million dollnro 



($ 4 0,000,000) of the Funds will be used 
to fund elimination of the target day 
provision [as described in 10 NCAC 
26H .0202(h)] for fiscal year s 1990 91 
and 1991 92, and to further other State 
Medicaid — purpo s es — fer — those — fiscal 
year s . 

{4) any remaining Fund s , not to exceed one 

hundred forty million dollars 

($1 4 0,000,000), will be used to make 
an additional payment adjustment to 
disproportionate — share — hospitals — fef 
services provided in April, May and 
June, — 1991, — as — provided — » — Rate 
.020 4 (g) of this Section. 

(5) any remaining Funds, not to exceed 

twenty two million five hundred 

thousand dollars ($22,500,000), will be 
used to fund Medicaid provider claim 
payments in November or December 
±994t 



Funds 



, not to 
million 



exceed 



one 
dollars 



(6) any remaining 

hundred s ixty 

($160,000,000), will be u s ed to make 
an additional payment adjustment to 
disproportionate — s hare — hospitals — fef 
s ervices — provided — » — My-, — August, 
September, — October, — November — and 
December, 1991, as provided in Rule 
■0204(g). 
{e) If contributions arc — made pur s uant to 



General Statute 1 4 3 23.2 during calendar year 



1992, the Department has determined that it will 
use them as follows; 



ft} the contributed funds will provide the 

total — non federal — share — of Medicaid 
expenditures for disproportionate share 
hospital payments made pursuant to 10 
NCAC 26H .020 4 (h) and the s tate 
portion of the total non federal share 
for all — other Medicaid — expenditures 
attributable to such contributions. 

{3} 4 0.193 percent of the contributed funds 

wiH — be — presented — to — the — federal 
government to be matched pursuant to 
federal financial participation rules and 
win — be — used — to — s upport — Medicaid 
program expenditures in SFY 91 92 or 
subsequent year s and an amount not to 
exceed five hundred thousand dollars 
($500,000) — to — support — Medicaid 
administrative — expenditures — in — SF¥ 
92 93 or s ubsequent years. 



{3) the — Department — wiH — present — the 

remaining — contributed — funds — upon 
receipt to the federal government to be 
matched pursuant to federal financial 
participation rules. — The total of the 

contributed eta4 matched funds 

hereinafter will be referred to as the 
"Funds" to be di s bur s ed in the order s ot 
forth in thi s Rule. 

(4) the Funds, not to exceed one hundred 

s ixty million dollars ($160,000,000) 
will fir s t be used to make an additional 
payment adjustment to disproportionate 
share hospitals for services provided 
during January through June, 1992, a s 
provided in 10 NCAC 26H .020 4 (h). 

i&) the remaining Funds, — not to exceed 

eighty million dollar s ($ 8 0,000,000), 
will next be used to make an additional 
payment adjustment to di s proportionate 
share hospitals for services provided 
during July through September, 1992, 
a s provided in 10 NCAC 26H .020 4 (h). 

{6) any remaining Funds, will be used to 

s upport Medicaid program expenditures 

« — SF¥ — 91-92-, — SF¥ — 93-93 — of 

subsequent years. 

{d) — Contributed funds shall be earmarked and 

maintained in a segregated account in accordance 

with General Statute 1 4 3 23.2(b). 



Authority G.S. 108A-25(b); 108A-54; 108A-55; 
S.L. 1985, c. 479, s. 86; 42 CF.R. 447, Subpart 
C. 

.0207 PROVIDER PARTICIPATION 

Payments made according to the standards and 
methods described in thi s plan are designed to 
enlist the participation of a majority of hospitals in 
the program so that eligible per s ons can receive 
medical care s ervice s included in the state plan at 
least to the extent these s ervices arc available to 
the general public. 

Authority G.S. 108A-25(b); 108A-54; 108A-55; 
S.L. 1985, c. 479, s. 86; 42 CF.R. 447, Subpart 
C. 

.0208 PAYMENT IN FULL 

Participation in the program shall be limited to 
hospitals — who — accept — the — amount — paid — « 
accordance with this plan as payment in full for 
services rendered to Medicaid recipients. 

Authority G.S. 108A-25(b); 108A-54; 108A-55; 



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NORTH CAROLINA REGISTER 



July 15, 1994 



518 



PROPOSED RULES 



801 Birthweight less than 1.000 grams 

802 

803 

804 



Birthweight 1,000 - 1,499 grams 
Birthweight 1,500 - 1,999 grams 



S.L. 1985, c. 479, s. 86; 42 C.F.R. 447, Subpart 
C. 

.0209 PAYMENT OF MEDICARE 
PART A DEDUCTIBLES 

For payment of Medicare Part A deductibles, the 
Division — of Medical — As s i s tance — w4H — pay — the 
Medicaid median per diem inpatient rote for one 
day — in lieu — of the Medicare Part A inpatient 
deductible, effective August 1, 1991. The median 
rate will be determined as of July 1 each year. 

Authority G.S. 108A-25(b); 108A-54; 108A-55; 42 
C.ER. 447, Subpart C; S.L. 1991, c. 689, s. 95. 

,0210 REIMBURSEMENT PRINCIPLES 

Effective for discharges occurring on or after 
October J^ 1994. acute care general hospital 
inpatient services shall be reimbursed using a 
Diagnosis Related Groups (DRG) system, except 
as noted in Rules .0212 and .0215 of this Section. 

Authority G.S. 108A-25(b); 108A-54; 108A-55; 42 
C.F.R. 447, Subpart C. 

.0211 DRG RATE SETTING 
METHODOLOGY 

(a) Diagnosis Related Groups is a system of 
classification for hospital inpatient services. For 
each hospital admission, a single DRG category is 
assigned based on the patient's diagnoses, age, 
procedures performed, length of stay, and 
discharge status. For claims with dates of services 
prior to October i, 1994 payments shall be based 
on the reimbursement per diem in effect prior to 
October 1± 1994. However, for claims related to 
services where the admission was prior to October 
L, 1994 and the discharge was after September 30, 
1994. then the greater of the total per diem for 
services rendered prior to October !_, 1994. or the are standardized by removing direct and indirect 



805 



389 



390 



391 



Birthweight > =2.000 grams, 
with Respiratory Distress 
Syndrome 

Birthweight > = 2,000 grams, 
premature with major problems 

Birthweight > = 2.000 grams, 
full term with major problems 

Birthweight > = 2.000 grams, 
full term with other problems or 
premature without major problems 

Birthweight > = 2.000 grams, 
full term without complicating 
diagnoses 



(c) DRG relative weights are a measure of the 
relative resources required in the treatment of the 
average case falling within a particular DRG 
category. The average DRG weight for a group of 
services, such as all discharges from a particular 
hospital or all North Carolina Medicaid 
discharges, is known as the case Mix Index (CMP 
for that group. 

The Division establishes relative weights for each 
utilized DRG based on a recent data set of 
historical claims submitted for Medicaid recipients- 
Charges on each historical Claim are converted to 
estimated costs by a pplying the cost conversion 
factors from each hospital's submitted Medicare 
cost report to each billed line item. Cost estimates 



appropriate DRG payment shall be made. 

(b) The Division of Medical Assistance 
(Division) uses the DRG assignment logic of the 
Medicare Grouper to assign individual claims to a 
DRG category. Medicare revises the Grouper 
each year in October. The Division shall install 
the most recent version of the Medicare Grouper 
implemented by Medicare. 

The DRG. in the Medicare Grouper, related to 
the care of premature neonates and other newborns 
numbered 385 through 391. are replaced with the 
following classifications: 

385 Neonate, died or transferred, 
length of stay less than 3 days. 



medical education costs at the appropriate rates for 
each hospital. 

Relative weights are calculated as the ratio of the 
average cost in each DRG to the overall average 
cost for all DRGs combined. Prior to calculating 
these averages, low statistical outlier claims are 
removed from the data set, and the costs of claims 
identified as high statistical outliers are ca pped at 
the statistical outlier threshold. The Division of 
Medical Assistance employs criteria for the 
identification of statistical outliers which are 
expected to result in the highest number of DRGs 
with statistically stable weights. 

The Division of Medical Assistance employs a 
statistically valid methodology to determine 



519 



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NORTH CAROLINA REGISTER 



July 15, 1994 



PROPOSED RULES 



whether there are a sufficient number of recent 



;laims to establish a stable weight for each DRG. 



?or DRGs lacking sufficient volume, the Division 
ids relative weights using DRG weights generated 
Tom the North Carolina Medical Data Base 
Commission's discharge abstract file covering all 



npatient services delivered in North Carolina 
lospitals. For DRGs in which there are an 



nsufficient number of discharges in the Medical 



Jata Base Commission data set, the Division sets 
elative weights based upon the published DRG 



wights for the Medicare program. 



Relative weights will be recalculated when 



ihanges are made to the DRG Grouper logic. 



Vhen relative weights are recalculated, the overall 



iverage CMI will be kept constant. 



(d) The Division of Medical Assistance 
istablishes a unit value for each hospital which 



epresents the DRG payment rate for a DRG with 



i relative weight of one. This rate is established 
is follows: 

(1) Using the methodology described in 
Paragraph (c) of this Rule, the Division 
estimates the cost less direct and 
indirect medical education expense on 
claims for discharges occurring during 
calendar year 1993. using cost reports 
for hospital fiscal years ending during 
that period or the most recent cost 
report available. All cost estimates are 
adjusted to a common fiscal year and 
inflated to the 1995 rate year. The 
average cost per discharge for each 
provider is calculated. 

(2) Using the DRG weights to be effective 
on October i, 1994. a CMI is 
calculated for each hospital for the 
same population of claims used to 
develop the cost per discharge amount 
in Subparagraph (d)(1) of this Rule- 
Each hospital's average cost per 
discharge is divided by its CMI to get 
the cost per discharge for a service with 
a DRG weight of one. 

(3) The amount calculated in Subparagraph 
(d)(2) of this Rule is reduced by 8% to 
account for outlier payments. 

(4) Hospitals are ranked in order of 
increasing CM adjusted cost per 
discharge. The DRG Unit Value for 
hospitals at or below the 33rd percentile 
in this ranking is set at the average of 
the hospital's own adjusted cost per 
discharge and the cost per discharge of 
the hospital at the 33rd percentile. The 



DRG Unit Value for hospitals ranked 
above the 33rd percentile is set at the 
cost per discharge of the 33rd 
percentile hospital, multiplied by the 
hospital's won wage index adjustment. 
as determined in Subparagraph (d)(5) of 
this Rule. 

(5) The wage index adjustment used in 
establishing the DRG rates effective 
October Xi 1994. is developed by 
dividing the published Medicare 
geographical area wage index for 
Federal Fiscal Year 1994 for each 
hospital by the average area wage index 
for all North Carolina hospitals 
weighted by their number of Medicaid 
discharges. 

(6) The hospital unit values calculated in 
Subparagraph (d)(4) of this Rule shall 
be updated annually by the National 
Hospital Market Basket Index and the 
most recent actual and projected cost 
data available from the North Carolina 
Office of State Budget and 
Management. 

(e) Reimbursement for capital expense is 
included in the DRG hospital rate described in 
Paragraph (d) of this Rule. 

(f) Hospitals operating Medicare approved 
graduate medical education programs shall receive 
a DRG payment rate adjustment which reflects the 
reasonable direct and indirect costs of operating 
those programs. 

(1) The Division defines reasonable direct 
medical education costs consistent with 
the base year cost per resident 
methodology described in 42 CFR 
413.86. The ratio of the amount 
aggregate approved amount for 
graduate medical education costs at 42 
CFR 413.86 £d} £D to total 
reimbursable costs (per Medicare 
principles) is the North Carolina 
Medicaid direct medical education 
factor. The direct medical education 
factor is based on information su pplied 
in the 1993 cost reports and shall not be 
routinely updated. 

(2) The North Carolina Medicaid indirect 
medical education factor is computed 
by. the following formula: 

0.405 
U9{iI±R) -JJ 
where R equals the number of approved 
intern and resident FTEs divided by the 



8 



NORTH CAROLINA REGISTER 



July 15, 1994 



520 



PROPOSED RULES 



number of licensed beds. The indirect 

medical education factor will be 

updated annually based on statistics 

contained in cost reports filed during 

the previous year. 

(3) Hospitals operating an a pproved 

graduate medical education program 

shall have their DRG unit values 

increased by the sum of the direct and 

indirect medical education factors. 

(g) Cost outlier payments are an additional 

payment made at the time a claim is processed for 

exceptionally costly services. These payments are 

subject to prior a pproval by the Division of 

Medical Assistance. 

(1) A cost outlier threshold is established 
for each DRG at the time DRG relative 
weights are calculated, using the same 
information used to establish those 
relative weights. The cost threshold is 
the greater of twenty-five thousand 
dollars ($25.000) or mean cost for the 
DRG plus 1.96 standard deviations. 

(2) Charges for non-covered services and 
services not reimbursed under the 
inpatient DRG methodology (such as 
professional fees) are deducted from 
total billed charges. The remaining 
billed charges are converted to cost 
using a hospital s pecific cost to charge 
ratio. The cost to charge ratio excludes 
medical education costs. 

(3) If the net cost for the claim exceeds the 
cost outlier threshold, a cost outlier 
payment \s made at 70% of the costs 
above the threshold. 

(h) Day outlier payments are an additional 
payment made for exceptionally long lengths of 
stay on services provided to children under six at 
disproportionate share hospitals and children under 
age one at non-disproportionate share hospitals. 
These payments are subject to prior approval by 
the Division of Medical Assistance. 

(1) A day outlier threshold is established 
for each DRG at the time DRG relative 
weights are calculated, using the same 
information used to establish the 
relative weights. The day outlier 
threshold is the greater of 30 days or 
the arithmetical average length of stay 
for the DRG plus 1.96 standard 
deviations. 

(2) A day outlier per diem payment may be 
made for covered days in excess of the 
day outlier threshold at 70% of the 



hospital's payment rate for the DRG 
rate divided by the DRG average length 
stay. 
(3) Services which qualify for cost outlier 
payments under Paragraph (g) of this 
Rule are not eligible for payment as day 
outliers. 



Authority G.S. 108A-25(b); 108A-54; 108A-55; 42 
C.F.R. 447, Subpart C. 

.0212 EXCEPTIONS TO DRG 
REIMBURSEMENT 

(a) Covered psychiatric and rehabilitation 
inpatient services provided in either specialty 
hospitals. Medicare recognized distinct part units 
(DPU). or other beds in general acute care 
hospitals shall be reimbursed on a per diem 
methodology. 

(1) For the purposes of this Section, 
psychiatric inpatient services are 
defined as admissions where the 
primary reason for admission would 
result in the assignment of DRGs in the 
range 424 through 432 and 436 through 
437. 

For the purposes of this Section, 
rehabilitation inpatient services are 
defined as admissions where the 
primary reason for admissions would 
result in the assignment of DRG 462. 
All services provided by specialty 
rehabilitation hospitals are presumed to 
come under this definition. 

(2) When a patient has a medically 
a ppropriate transfer from a medical or 
surgical bed to a psychiatric or 
rehabilitative distinct part unit within 
the same hospital, the admission to the 
distinct part unit shall be recognized as 
a separate service which js eligible for 
reimbursement under the per diem 
methodology. 

Transfers occurring in general hospitals 
from acute care services to non-DPU 
psychiatric or rehabilitation services are 



not eligible for reimbursement under 



this Section. The entire hospital stay in 



these instances shall be reimbursed 



Ql 



under the DRG methodology. 

The per diem rate for psychiatric 



services is established at the lesser of 
the actual cost trended to the rate year 
or the calculated median rate of all 
hospitals providing psychiatric services 



521 



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NORTH CAROLINA REGISTER 



July 15, 1994 



PROPOSED RULES 



as derived from the most recent as filed 
cost reports. 

(4) Hospitals that do not routinely provide 
psychiatric services shall have their rate 
set at the median rate. 

(5) The per diem rate for rehabilitation 
services is established at the lesser of 
the actual cost trended to the rate year 
or the calculated median rate of all 
hospitals providing rehabilitation 
services as derived from the most 
recent filed cost reports. 

(6) Rates established under Rule .0212 
Paragraph (a) of this Section are 
adjusted for inflation consistent with the 
methodology under Rule .021 1 
Subparagraph (d)(6) of this Section. 

(b) To assure compliance with the separate 
upper payment limit for State-operated facilities, 
the hospitals operated by the Department of 
Human Resources and all the primary affiliated 



teaching hospitals for the University of North 



Carolina Medical Schools will be reimbursed their 



reasonable costs in accordance with the provisions 



of the Medicare Provider Reimbursement Manual. 
The Division shall utilize the DRG methodology to 



make interim payments to providers covered under 



this paragraph, setting the hospital unit value at a 
level which can best be expected to approximate 
reasonable cost. Interim payments made under the 



DRG methodology to these providers shall be 



retrospectively settled to reasonable cost. 



Authority G.S. 108A-25(b); 108A-54; 108A-55; 42 
CF.R. 447, Subpart C 

0213 DISPROPORTIONATE SHARE 
HOSPITALS 

(a) Hospitals that serve a disproportionate share 
2f low-income patients and have a Medicaid 
n patient utilization rate of not less than one 



percent are eligible to receive rate adjustments. 



fhe cost report data and financial information that 
s required in order to qualify as a disproportionate 
share hospital effective April L. 1991 is based on 
he fiscal year ending in 1989 for each hospital, as 
ubmitted to the Division of Medical Assistance on 



>r before Ap ril 1. 1991. The cost report data and 
inancial information to qualify as a 



lisproportionate share hospital effective July j^ 



991 is based on the fiscal year ending in 1990 for 
ach hospital, as submitted to the Division of 
Medical Assistance on or before September J_, 
991. In subsequent years, qualifications 



ifFective July 1 of any particular year are based on 



each hospital's fiscal year ending in the preceding 
calendar year. The patient days, costs, revenues. 
or charges related to nursing facility services, 
swing-bed services, home health services, 
outpatient services, or any other service that is not 
a hospital inpatient service cannot be used to 
qualify for disproportionate share status. A 
hospital is deemed to be a disproportionate share 
hospital ifj. 



01 



in 



01 



The hospital has at least two obstetri- 
cians with staff privileges at the hospi- 
tal who have agreed to provide obstetric 
services to individuals eligible for 
Medicaid. In the case of a hospital 
located in a rural area, the term obste- 
trician includes any physician with staff 
privileges at the hospital to perform 
non-emergency obstetric services as of 
December 21. 1987 or to a hospital that 
predominantly serves individuals under 
18 years of age; and 
The hospital's Medicaid inpatient utili- 
zation rate, defined as the percentage 
resulting from dividing Medicaid pa- 
tient days by. total patient days, is at 
least one standard deviation above the 
mean Medicaid inpatient utilization rate 
for all hospitals that receive Medicaid 
payments in the state; or 
The hospital's low income utilization 
rate exceeds 25 percent. The low- 
income utilization rate is the sum of: 
The ratio of the sum of Medicaid 



{A} The 



inpatient revenues plus cash subsidies 
received from the State and local 
governments. divided by the 
hospital's total patient revenues: and 
(B) The ratio of the hospital's gross inpa- 
tient charges for charity care less the 
cash subsidies for inpatient care re- 
ceived from the State and local gov- 
ernments divided by. the hospital's 
total inpatient charges; or 

(4) The sum of the hospital's Medicaid 
revenues, bad debts allowance net of 
recoveries, and charity care exceeds 20 
percent of gross patient revenues: or 

(5) The hospital, in ranking of hospitals in 
the State, from most to least in number 
of Medicaid patient days provided, is 
among the top group that accounts for 
50% of the total Medicaid patient days 
provided by all hospitals in the State; or 

(6) Psychiatric Hospitals operated by the 
North Carolina Department of Human 



K-8 



NORTH CAROLINA REGISTER 



July 15, 1994 



522 



PROPOSED RULES 



Resources, Division of Mental Health. 
Developmental Disabilities. Substance 
Abuse Services (DMH/DD/SAS) and 
UNC Hospitals operated by the 
University of North Carolina. 

(b) The rate adjustment for a disproportionate 
share hospital is 2^5 percent plus one fourth of one 
percent for each percentage point that a hospital's 
Medicaid inpatient utilization rate exceeds one 
standard deviation of the mean Medicaid inpatient 
utilization rate in the State. The rate adjustment is 
applied to a hospital's payment rate exclusive of 
any previous disproportionate share adjustments. 

(c) Effective July 1± 1994. hospitals eligible 
under Subparagraph (a)(6) of this Rule will be 
eligible for disproportionate share payments, in 
addition to other payments made under the North 
Carolina Medicaid Hospital reimbursement 
methodology, from a disproportionate share pool 
under the circumstances specified below: 

(1) An eligible hospital will receive a 
monthly disproportionate share payment 
based on the monthly bed days of 
services to low income persons of each 
hospital divided by the total monthly 
bed days of services to low income 
persons of all hospitals items allocated 
funds. 

(2) This payment shall be in addition to the 
disproportionate share payments made 
in accordance with Rule .0217. 
Administrative A ppeals of this Section. 
However. DMH/DD/SAS operated 
hospitals are not required to qualify 
under the requirements of Subparagraph 
(a) (1) through (5) of this Rule. 

(3) The amount of allocated funds shall be 
determined by the Director of the 
Division of Medical Assistance, but not 
to exceed the quarterly grant award of 
funds (plus a ppropriate non-federal 
match) earmarked for diaproportioinate 
share hospital payments less payments 
made under Subparagraphs (a)(1) 
through (5) and Rule .0217 divided by 
three. 

In Subparagraph (c)(1) of this Rule, bed days of 
services to low income persons is defined as the 
number of bed days provided to individuals that 
have been determined by. the hospital as patients 
that do not possess the financial resources to pay 
portions or all charges associated with care 
provided. 

Low income persons include those persons that 
have been determined eligible for medical 



assistance. The count of bed days used to 
determine payment is based upon the month 
immediately prior to the month that payments are 
made. 

Disproportionate share payments to hospitals are 
limited in accordance with The Social Security Act 
as amended. Title XIX section 1923 (g). limit on 
amount of payment to hospitals. 

Authority G.S. 108A-25(b); 108A-54; 108A-55; 42 
CF.R. 447, Subpart C 

,0214 OUT OF STATE HOSPITALS 

(a) Except as noted in Paragraph (c) of this 
Rule, the Division of Medical Assistance shall 
reimburse out-of-state hospitals using the DRG 
methodology. The DRG hospital unit value for all 
out-of-state hospitals shall be equal to the unit 
value of the 25th percentile North Carolina 
hospital. Out-of-state providers are eligible to 
receive cost and day outlier payments, but not 
direct medical education payment adjustments. 

(b) Hospitals that are certified for indirect 
medical education by Medicare may apply for an 
indirect medical education adjustment to its North 
Carolina rate. 

(c) Hospitals certified as disproportionate share 
hospitals by the Medicaid agency in their home 
state may apply for a disproportionate share 
adjustment to their North Carolina Medicaid rate. 
The North Carolina disproportionate share hospital 
rate adjustment shall be the hospital's home state 
DSH adjustment, not to exceed 5%. 

(d) The Division of Medical Assistance may 
enter into contractual relationships with certain 
hospitals providing highly specialized inpatient 
services, in which case reimbursement for inpatient 
services shall be based on contractual terms, not to 
exceed fair and reasonable cost. 

Authority G.S. 108A-25(b); 108A-54; 108A-55; 42 
CF.R. 447, Subpart C. 

.0215 SPECIAL SITUATION 

(a) In order to be eligible for reimbursement 
under Section .0200 of this Subchapter, a patient 
must be admitted as an inpatient and stay past 
midnight in an inpatient bed. The only exceptions 
to this requirement are those admitted inpatients 
who die or are transferred to another acute care 
hospital on the day of admission. Hospital 
admissions prior to 72 hours after a previous 
inpatient hospital discharge are subject to review 
by the Division of Medical Assistance. 

Services for patients admitted and discharged on 



523 



9:8 



NORTH CAROLINA REGISTER 



July 15, 1994 



PROPOSED RULES 



the same day and who are discharged to home or 
to a non-acute care facility must be billed as 
outpatient services. In addition patients who are 



admitted to observations status do not qualify as 



inpatients, even when they stay past midnight- 
Patients in observation status for more than 30 



hours must either be discharged or converted to 



inpatient status. 



(b) Outpatient services provided to patients 
within the 72 hour period prior to an inpatient 



admission in the same hospital shall be bundled 



with the inpatient billing. 

(c) When a patient is transferred between 
hospitals, the discharging hospital shall receive a 



pro-rated payment equal to the normal DRG 



payment multiplied by the patient's actual length of 



stay divided by. the geometric mean length of stay 
for the DRG. When the patient's actual length of 
stay equals or exceeds the geometric mean length 
jf stay for the DRG. the transferring hospital 
receives full DRG payment. Transfers are eligible 
or cost outlier payments. The final discharging 
lospital shall receive the full DRG payment, 
(d) Days for authorized skilled nursing for 
ntermediate care level for service rendered in an 



iqual to the average rate for all such Medicaid 



acute care hospital shall be reimbursed at a rate 



lays based on the rates in effect for the long term 
are plan year beginning each October JL 
Days for lower than acute level of care for 
rentilator dependent patients in swing-bed hospitals 



n that have been down-graded through the 
itilization review process may be paid for up to 



80 days at a lower level ventilator-dependent rate 
f the hospital is unable to place the patient in a 
ower level facility. An extension maybe granted 



f in the opinion of the Division of Medical 
Assistance the condition of the patient prevents 
cceptance of the patient, a single all inclusive 



irospective per diem rate is paid, equal to the 
verage rate paid to nursing facilities for 



'entilator-dependent services. The hospital must 



(e) When patients are transferred to a lower 
jyel of care prior to the expiration of the average 
sngth of stay for the applicable DRG. the Division 



f Medical Assistance shall not begin making 
ayments at the skilled or intermediate care rate 



ctively seek placement of the patient in an 



ppropriate facility. 



ntil the patient's total stay from the time of 
ospital admission exceeds the average length of 



lay for the acute care DRG. The reimbursement 
ar any skilled nursing or intermediate care days 
hich occur prior to the patient achieving the 
>RG average length of stay shall be the 



responsibility of the discharging hospital. 

(f) In state-operated hospitals, the a ppropriate 
lower level of care rates equal to the average rate 
paid to state operated nursing facilities, are paid 
for skilled care and intermediate care patients 
awaiting placement in a nursing facility bed. 

(g) For an inpatient hospital stay where the 
patient is Medicaid eligible for only part of the 
stay, then the Medicaid program shall pay the 
DRG payment less the patient's liability. 

Authority G.S. 108A-25(b); 108A-54; 108A-55; 42 
C.F.R. 447 Subpart C. 

.0216 COST REPORTING AND AUDITS 

(a) On or before December 1 of each year each 
hospital is required to send to the Division of 
Medical Assistance one copy of its^ fiscal year 
1982 budget and any supplementary materials as 
submitted to Blue Cross and Blue Shield of North 
Carolina. 

(b) Annual cost report shall be filed with the 
Medicare Intermediary. Blue Cross and Blue 
Shield of North Carolina in accordance with all 
standards, principles, and time schedules required 
by the Common Medicare/Medicaid Audits. 

Authority G.S. 108A-25(b); 108A-54; 108A-55; 42 
C.F.R. 447, Subpart C. 

,0217 ADMINISTRATIVE 

RECONSIDERATION REVIEWS 

Reconsideration reviews of rate determinations 
shall be processed in accordance with the 
provisions of K) NCAC 26K. Requests for 
reconsideration reviews shall be submitted to the 
Division of Medical Assistance within 60 days 
after rate notification, unless unexpected conditions 
causing intense financial hardship arise, in which 
case a reconsideration review may be considered 
at any time. 

Authority G.S. 108A-25(b); 108A-54; 108A-55; 42 
C.F.R. 447, Subpart C. 

.0218 BILLING STANDARDS 

(a) Providers shall use codes from the 
International Classification of Diseased. 9th 
Revision. Clinical Modification (ICD-9-CM) to 
report diagnoses and procedures. Providers shall 
use the codes which are in effect at the time of 
discharge. The reporting of ICD-9-CM diagnosis 
and procedure codes shall follow national coding 
guidelines promulgated by the Health Care 
Financing Administration. 



:8 



NORTH CAROLINA REGISTER 



July 15, 1994 



524 



PROPOSED RULES 



(b) Providers shall generally bill only after 
discharge. However, interim billings may be 
submitted 60 days after an admission and every 60 
days thereafter. Bills subsequent to the first claim 
should be in the adjustment bill format and should 
include all a pplicable diagnoses and procedures, 
coded in the order which represents their prece- 
dence when the admission is considered as a 
whole 

Authority G.S. 108A-25(b); 108A-54; 108A-55; 42 
C.F.R. 447, Subpart C. 

.0219 PAYMENT OF MEDICARE 
PART A DEDUCTIBLES 

For payment of Medicare Part A deductibles, the 
Division of Medical Assistance shall pay the 
Medicaid DRG payment less the amount paid by. 
Medicare. 

Authority G.S. 108A-25(b); 108A-54; 108A-55; 42 
C.F.R. 447, Subpart C. 

.0220 PAYMENT ASSURANCES 

The state shall pay each hospital the amount 
determined for inpatient services provided by the 
hospital according to the standards and methods set 
forth in this Rule. In al] circumstances involving 
third party payment. Medicaid shall be the payor 
of last resort. 

Authority G.S. 108A-25(b); 108A-54; 108A-55; 42 
C.F.R. 447, Subpart C. 

.0221 PROVIDER PARTICD7ATION 

Payments made according to the standards and 
methods described in this plan are designed to 
enlist the participation of a majority of hospitals in 
the program so that eligible persons can receive 
medical care services included in the State Plan at 
least to the extent these services are available to 
the general public. 

Authority G.S. 108A-25(b); 108A-54; 108A-55; 42 
C.F.R. 447, Subpart C. 

.0222 PAYMENT IN FULL 

Participation inn the program shall be limited to 
hospitals who accept the amount paid in accor- 
dance with this plan as payment in full for services 
rendered to Medicaid recipients. 

Authority G.S. 108A-25(b); 108A-54; 108A-55; 42 
C.FR. 447, Subpart C. 



TITLE 11 - DEPARTMENT OF 
INSURANCE 

I\otice is hereby given in accordance with G.S. 
150B-21.2 that the N.C Department of Insurance 
intends to amend rules cited as 11 NCAC 12 .0324 
- . 0325, . 1304 and adopt . 1501 - . 1509. 

1 he proposed effective date of this action is 
October 1, 1994. 

I he public hearing will be conducted at 10:00 
a.m. on August 2, 1994 at the Dobbs Building, 
Third Floor Hearing Room, 430 N. Salisbury 
Street, Raleigh, NC 27611. 

treason for Proposed Action: 

II NCAC 12 .0324 - .0325 and .1304 - Clarify 
terminology. 

11 NCAC 12 .1501 • .1509 - Comply with statute 
changes made during 1993 session of the General 
Assembly. 

l^omment Procedures: Written comments may be 
sent to Vbke Hamrick at P.O. Box 26387, Ra- 
leigh, N.C. 27611. Oral presentations may be 
made at the public hearing. Anyone having ques- 
tions should call Vhke Hamrick at (919) 733-5060 
or Ellen Sprenkel at 733-4529. 

CHAPTER 12 - LIFE AND 
HEALTH DrVISION 

SECTION .0300 - GENERAL 
PROVISIONS 



.0324 HTV AND ADDS DISCRIMINATION 
PROfflBrTED 

AIDS and ARC muot b e treat e d as any oth e r 



dread disease und e r policy provisions and applioa 
tiono. — ARC must be d e fined within the form 



Human Immunodeficiency Virus (HIV) infection 



(symptomatic and asymptomatic) and Acquired 



Immune Deficiency Syndrome (AIDS) must be 
treated as any. other illness or sickness under 
health insurance policy provisions and policy 
a pplications. HIV and AIDS must be defined 
within the policy and the a pplication if any ques- 
tions are asked about HIV and AIDS . 

Statutory Authority G.S. 58-2-40; 58-3-150; 
58-51-1; 58-51-85; 58-51-95. 



525 



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NORTH CAROLINA REGISTER 



July 15, 1994 



for work-related injuries or sickness unless 

benefits are paid or payable for such injuries or 



PROPOSED RULES 



0325 OCCUPATIONAL INJURIES 

OR DISEASES 
Benefits for occupational injury o r sickness ahall 
be provided by payers of group health insurance 



benefits if an inourod injured or s ick employee is 



in eligible — fef — worker s ' — compensation — benefits 
Health insurance policies may not exclude cover- 



sickness under Chapter 97 of the General Statutes 



of North Carolina . 

Statutory Authority G.S. 58-2-40; 58-3-150; 
58-51-1; 58-51-85; 58-51-95. 

SECTION .1300 - SMALL EMPLOYER 
GROUP HEALTH INSURANCE 

.1304 COMPLIANCE 

(a) Each carrier and third party administrator 
shall file a report on North Carolina small 
employer group insurance activity annually on or 
before March 15, which report shall describe case 
characteristics and numbers of health benefit plans 
in various categories marketed or issued to small 
employers. The report shall be in a format 
prescribed by the Commissioner. 

(b) Each carrier shall provide the same health 
benefit plan to eligible employees and dependents^ 
provided, however, under G.S. 58-67-35(a)(5) and 



a) (6). an HMO may offer its approved small 



employer health benefit plan in conjunction with 



in a pproved indemnity benefit plan to eligible 
employees and dependents, and the two plans must 



je of similar value in that the deductibles, 
repayments, and covered benefits must be 



comparable. 



(c) A carrier shall not set contribution and 
jarticipation requirements for the statutory plans 
hat are more restrictive than those for the carrier's 
nonstatutory plans. 

(d) If any eligible employee or dependent has 
lualifying existing coverage, as defined in G.S. 
58-50- 130(a) (5), and therefore does not participate 
n the employer's health benefit plan, a carrier is 
lot required to issue or renew the employer's plan 
mless either: 

(1) at least two eligible employees in a 
group of seven or less elect to 
participate; or 

(2) at least 25 percent of eligible employees 
in a group of more than seven elect to 
participate. 

(e) Each carrier shall offer both statutory plans 
o any small employer upon request or if the 



W 



NORTH CAROLINA REGISTER 



carrier is unable to issue a nonstatutory plan to the 
small employer applicant. 

(f) A carrier shall provide an extension of 
benefits to any insured who is a hospital inpatient 
until the insured is released by the hospital if the 
insured's existing coverage would end during the 
insured's hospital stay and if replacement coverage 
is not available to the insured, subject to the 
continued payment of monthly premiums or dues 
by the insured. 

(g) New business applications submitted to a 
carrier on and after September 1, 1992, shall be 
accompanied by a statement signed by the 
producer and the small employer applicant that 
certifies that the employer understands that the 
firm may elect coverage under the statutory plans. 
The disclosure form shall be made part of such 
statement. A copy of the signed statement and 
disclosure form must be provided to the small 
employer applicant. The disclosure form shall be 
in a form prescribed by the Commissioner. 

(h) If a carrier establishes more than one class 
of business under G.S. 58-50-1 13, the carrier shall 
maintain at least one basic and standard health care 
plan in each class of business so established. 
Nothing in this Section prevents a carrier from 
offering the statutory plans through an association 
or multiple employer trust. 

Statutory Authority G.S. 58-2-40(1); 58-50-105; 
58-50-113; 58-50-1 20(c)(4); 58-50-1 20(c)(6); 
58-50-125(d); 58-50-1 30(a)(2); 58-50-1 30(a)(5); 
58-50-130(d); 58-50-130(f). 

SECTION .1500 - UNIFORM 
CLAIM FORMS 

.1501 DEFINITIONS 

In this Section, unless the context clearly 
indicates otherwise: 

£H "ADA J510 Form" means the health 
insurance claim form published in 1990 
by the American Dental Association. 

£2} "CPT-4 Codes" means the Physician 
Current Procedural Terminology. Fourth 
Edition, published by the American 
Medical Association. 

(3) "County code" means the established 
Federal Information Processing Standards 
code number per county as used by the 
North Carolina State Data Center. Office 
of State Planning. 

(4) "Ethnic origin code" is the established 
Ethnic (Race) Code as used by the 
Economics and Statistics Administration. 



July 15, 1994 



526 



PROPOSED RULES 



£5] 



Bureau of Labor Statistics. U.S. 
Department of Commerce. 
"HCFA" means the Health Care 
Financing Administration 



of the U.S. 
and Human 



Department of Health 

Services. 
£6) "HCFA Form 1450 (UB92)" means the 

health insurance claim form published by 

the HCFA for use by. institutional health 

care providers. 
£7} "HCFA Form 1500" means the health 

insurance claim form published by the 

HCFA for use by individual health care 

providers. 
£8} "HCPCS" means HCFA's Common 

Procedure Coding System, a coding 

system that describes products, supplies. 

procedures, and health care provider 

services; and includes the CPT-4 Codes. 

alphanumeric codes. and related 

modifiers. HCPCS includes: 
£a] "HCPCS Level 1 Codes", which are the 
CPT-4 codes and modifiers for 
professional services and procedures; 
£b} "HCPCS Level 2 Codes", which are 
national alphanumeric codes and 
modifiers for health care products and 
supplier, as well as some codes for 
professional services not included in the 
CPT-4 Codes; 
£c) "HCPCS Level 3 Codes", which are 
local alphanumeric codes and modifiers 
for items and services not included in 
HCPCS Level 1 or HCPCS Level 2. 
£9} "ICD-9-CM Codes" means the diagnosis 

and procedure codes in the International 

Classification of Diseases. Ninth 

Revision. Clinical Modifications. 

published by the U.S. Department of 

Health and Human Services. 

(10) "Individual health care provider" includes 
any individual, natural, person who, 
under Chapter 90 of the General Statutes 
is licensed, registered, or certified to 
engage in the practice of or performs 
duties associated with any of the 
following: medicine, surgery, dentistry, 
pharmacy. optometry. midwifery, 
osteopathy. podiatry. chiropractic, 
radiology. nursing, physiotherapy, 
pathology, anesthesiology, anesthesia, 
laboratory analysis, rendering assistance 
to a physician, dental hygiene, 
psychiatry, or psychology. 

(11) "Institutional health care provider" 



m 

i£l 

£di 

£e) 

(12) 

(13) 

(14) 



includes: 

a hospital licensed under G.S. 131E- 

176(13); 

an ambulatory surgical facility licensed 

under G.S. 131E-176(la): 

a health service facility licensed under 

G.S. 131E-176(9b): 

a home health agency licensed under 

G.S. 131E-176(12): 

any of the entities listed in G.S. 58-55- 

35^ 
"Payor" means an entity that provides a 
"health benefit plan", as defined in G.S. 
58-2-171(b). 

"Standard claim form" means the HCFA 
Form 1450 (UB92). HCFA Form 1500. 
or ADA J510 Form. 
"SUBC" means the State Uniform Billing 
Committee. 



Statutory Authority G.S. 58-2-40; 58-3-171. 

.1502 REQUIREMENTS FOR USE 
OF HCFA FORM 1450 (UB92) 

£a) Effective January 1. 1995. the HCFA Form 
1450 (UB92) will be the standard claim form for 
all manual billing by. institutional health care 
providers: and the HCFA Form 1450 will be 
accepted by. all payors conducting business in this 
State. 

(b) Effective January J^ 1995. the following 

additional information and placement location will 

be required for the HCFA Form 1450 (UB92): 

(1) The payor LP. number shall be located 

as the first data element in form locator 

50 (lines A. B. C). This element will 

be followed by a 7^ if additional 

information is recorded in this form 

locator. Only codes identified for use 

in that field as defined in the Uniform 

Billing Form HCFA 1450 (UB92) 

Manual as published by the SUBC will 

be used. 



£2) 

in 



The provider tax LP. number shall be 
located in form locator 5^ 
The ethnic origin code shall be located 
in form locator 24-30 (Condition 
Codes), using Code Z0-Z9 (see 



14} 



definitions as defined in the State 
Uniform Billing Manual) to translate 
the ethnic origin codes. 
The county code shall be located in 
form locator 13 as the last entry in the 
address field as an additional code 
printed after the zip code, and it shall 



527 



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NORTH CAROLINA REGISTER 



July 15, 1994 



PROPOSED RULES 



be preceded by the symbol "/". 
£c} Effective October L, 1995. the cause of 
injury code shall be located in form locator 77. 
This code will be required on all HCFA Form 



1450 (UB92) claims generated by. institutional 



health care providers for claims of inpatients and 
of patients treated in emergency rooms or trauma 
centers; and where the diagnosis includes an injury 



diagnosis, which means a diagnostic code in the 



range or 800-999 as defined in the ICD-9 coding 



manual. Coding of the cause of injury shall be in 



accordance with national standards created in the 



Guidelines of Cooperating Parties, a national 



coding standards setting group. The absence of 



this code may not be used to deny the payment of 
\ claim. 



(d) Payors may require institutional health care 
providers to use only the following coding systems 



for the filing of claims for health care services: 
£1} ICD-9-CM Codes to report all 
diagnoses and reasons for encounters ; 
based upon code level changes made 
effective October 1 of each year. 
£2) HCPCS Level 1 and 2 Codes - based 
upon code level changes made effective 
October 1 of each year. 
(3) CPT-4 Codes based upon code level 
changes made effective April l_ of each 
year. 
£e) When there is no applicable HCPCS Level 1 
n Level 2 Code or modifier, the payor may 



ist of all codes and modifiers established by. 
>avors must be published by and available upon 



(f) Place of service codes and descriptions will 
e recognized by all payors processing claims for 
tealth care services rendered in this State on and 



•equest from payors by January \_i 1995. 



tfter January 1^ 1996. 



(g) Both HCFA physician and specialty codes 
md North Carolina Board of Medical Examiners 
pecialty definitions shall be recognized by payors 



irocessing claims for health care services rendered 



a thjs State on and after January 1^ 1996. 



'tatutory Authority G.S. 58-2-40; 58-3-171. 

1503 REQUIREMENTS FOR USE 
OF HCFA FORM 1500 

M Effective January 1 . 1995. the HCFA Form 
500 will be the standard claim form for all 
aanual individual health care provider billing; and 



je HCFA Form 1500 will be accepted by all 

ayors conducting business in this State. 

(b) Effective January 1^ 1995. the following 



additional information and placement location will 
be required for the HCFA Form 1500: 



ID 



£2) 
£3} 



The payor I.D. number shall be located 
as the first data element in form locator 
11. This element will be followed by a 
"/" if additional information is recorded 
m this form locator. Only codes 
identified for use in that field as defined 
m the Uniform Billing Form HCFA 
1450 (UB92) Manual as published by 
the SUBC will be used. 
The provider tax I.D. number shall be 
located in form locator 25. 
The ethnic origin code shall be located 
in form locator la as the subsequent set 
of numbers in that form locator; the 
first set of numbers being the insured's 
LP. number. Codes Z0-Z9 (see 
definitions as defined in the State 



istablish its own code or modifier. A complete for 



Uniform Billing Manual), to translate 
the ethnic origin codes, will be used to 
designate the ethnic origin and preceded 
by the symbol "/". 
(4) The county code shall be located in 
form locator 5 (zip code) and shall be 
the last entry in this form locator as an 
additional code printed after the zip 
code: and h shall be preceded by the 
symbol "/". 
(c) Payors may require individual health care 
providers to use only the following coding system 
for the filing of claims for health care services: 



ID ICD-9-CM Codes to report aH 
diagnoses and reasons for encounters ; 
based upon code level changes made 
effective October 1 of each year. 
£2} HCPCS Level 1 and 2 Codes - based 
upon code level changes made effective 
October J. of each year. 
(3) CPT-4 Codes based upon code level 
changes made effective April I of each 
year. 
Mi When there is no a pplicable HCPCS Level 
i or Level 2 Code or modifier, the payor may 
establish its own code or modifier. A complete 
list of all codes and modifiers established by 
payors must be published by and available upon 
request from payors by January _L 1995. 

(e) Type of service codes may not be used after 
December 31. 1995. 

(f) Place of service codes and descriptions will 
be recognized by all payors processing claims for 
services rendered in North Carolina on and after 
January 1. 1996. 

(g) Both HCFA physician and specialty codes 



:* 



NORTH CAROLINA REGISTER 



July 15, 1994 



528 



PROPOSED RULES 



and North Carolina Board of Medical Examiners 
specialty definitions shall be recognized by payors 
processing claims for services rendered in North 
Carolina on and after January \± 1996. 

(h) A Uniform Billing Manual, similar to the 
concept used by. the SUBC for HCFA Form 1450 
(UB92), shall be developed to set forth HCFA 
Form 1500 standards by August L, 1995. The 
SUBC, along with the North Carolina Medical 
Society, may develop and recommend a Uniform 
Billing Manual to the Commissioner by August 1_, 
1995. This manual may include standards 
established by the National Uniform Billing 
Committee as reflected in its ANSI 837 Guide to 
be released in February of 1995. 

Statutory Authority G.S. 58-2-40; 58-3-171. 

.1504 REQUIREMENTS FOR USE 
OF ADA FORM J512 

(a) Effective January 1. 1995, Dentists shall use 
the ADA J510 Form and instructions for all 
manual claims filing with payors. 

(1) The payor I.D. number shall be located 
in form locator 10. This element will 
be followed by a 211 if additional 
information is recorded in this form 
locator. Only codes identified for use 
in that field as defined in the Uniform 
Billing Form HCFA 1450 (TJB92) 
Manual as published by the SUBC will 
be used. 

(2) The provider tax I.D. number shall be 
located in form locator 18. 

(3) The ethnic origin code shall be located 
in form locator 31 using Code Z0-Z9 
(see definitions as defined in the State 
Uniform Billing Manual), to translate 
the ethnic origin codes, and shall be the 
first entry on the first line of that form 
locator, and it shall be followed by the 
symbol "/". 

(4) The county code shall be located in 
form locator 6 and shall be the last 
entry in this form locator as an 
additional code printed after the zip 
code, and it shall be preceded by the 
symbol "/". 

(b) A Uniform Billing Manual, similar to the 
concept used by the SUBC for the HCFA Form 
1450 (UB92). shall be developed to set standards 
for the ADA J510 Form by August 1. 1995. The 
North Carolina Dental Society may develop and 
recommend a Uniform Billing Manual to the 
Commissioner on or before August L, 1995. 



Statutory Authority G.S. 58-2-40; 58-3-171. 

.1505 MANAGED CARE FORMS 

(a) As used in this Rule, "managed care plan" 
includes a health maintenance organization, a 
preferred provider organization or arrangement, or 
an exclusive provider panel. 

(b) The following managed care forms may be 
used by managed care plans, but shall not be a 
part of the standard claim form: 

(1) An "out-of-network" justification form 
will be used by patients filing claims 
with their managed care plans when 
they have to justify the reasons they 
sought out-of-network health care 
services. This form will be 
standardized: and the managed care 
plan industry shall develop and file this 
form with the Commissioner for 
approval on or before October 1. 1995. 

(2) A "patient encounter form and 
electronic format" will be used by 
managed care plans to record and 
report encounter information. This 
form will provide information similar to 
the HCFA Form 1450 (TJB92) and 
HCFA Form 1500 and will include 
information on patient identification, 
dates of services provided, types of 
services provided, and identities of 
health care providers. This form and 
electronic formats will be standardized: 
and the managed care plan industry 
shall develop and file these with the 
Commissioner for a pproval on or 
before October 1. 1995. 

Statutory Authority G.S. 58-2-40; 58-3-171. 



.1506 ELECTRONIC FORMAT 
STANDARDS 

{a} As used in this Rule. "ASC X12 Standard 
Format" means the standards for electronic data 
interchange within the health care provider 
industry developed by the Accredited Standards 
Committee X12 Insurance Subcommittee of the 
American National Standards Institute. 

(b) Payors and health care providers that receive 
or generate claims or send payments by electronic 
means shall, by October 1, 1996. accept or 
generate the a ppropriate ASC X12 Standard 
Format for their health care claims submission and 
remittance transactions. 



Statutory Authority G.S. 58-2-40; 58-3-171. 



529 



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NORTH CAROLINA REGISTER 



July 15, 1994 



PROPOSED RULES 



.1507 ATTACHMENT FORM OR 
FORMAT 

(a) As used in this Rule, "attachment form or 
format" means a form, document. or 



communication of any kind used by a payor to 



request additional information other than that 



contained on the standard claim form, from a 



health care provider, in connection with processing 



a claim for payment. 

(b) Effective January 1± 1995. no additional 
attachment forms or formats may be used except as 



authorized by. this Section. Payors may use local 



use blocks on the standard claim form or obtain 
prior approval from the Commissioner to use other 



information in addition to that contained in the 



standard claim form. 



(c) All attachment forms or formats in use on 
October 1^ 1994, must be submitted by payors to 



the Commissioner for registration on or before 
January 1^ 1995. and may continue to be used 



thereafter if they are in compliance with this 



Section. Payors may not require the submission of 



information already contained in the standard claim 



form, or any other information not necessary for 
the processing of a claim. After January 1. 1995, 
no additional attachments shall be used unless filed 



with and a pproved by the Commissioner. 

(d) The SUBC may recommend to the 
Commissioner any changes to the standard claim 
form on or before October I of each year 



beginning in 1995. 



Statutory Authority G.S. 58-2-40; 58-3-171. 

1508 MEDICARE SUPPLEMENT PAYORS 

Effective October 1^ 1996. payors of Medicare 
supplement insurance shall electronically interface 



claims data with the Medicare Section of HCFA. 



Statutory Authority G.S. 58-2-40; 58-3-171. 

.1509 PATIENT SUBMITTED CLAIM 
FORMS 

The standard claim form shall be provided to any 
patient by any health care provider if that patient 



must submit a claim to a payor. The standard 



payment of services and will be used by the patient 



to request reimbursement from a payor. Health 
sare providers may also continue to provide 
patients billing statements for subsequent billing of 



he same services. No payor may require any 
additional documentation from a patient to supp ort 



claim form will be provided as the initial bill for 



claim for reimbursement payment by a patient if 



he information required is already contained on 



9:8 



NORTH CAROLINA REGISTER 



the standard claim form. No payor shall require 
any patient to submit claims or other information 
in an electronic format. 

Statutory Authority G.S. 58-2-40; 58-3-171. 

TITLE 12 - DEPARTMENT OF 
JUSTICE 

Notice is hereby given in accordance with G.S. 
150B-21.2 that the N.C. Department of Justice, 
State Bureau of Investigation intends to amend 
rules cited as 12 NCAC 4E .0104, .0201 - .0202, 
.0303, .0402; 4F .0201, .0401; and 4G .0102. 

1 he proposed effective date of this action is 
October 1, 1994. 

1 he public hearing will be conducted at 10:00 
a.m. on August 9, 1994 at the Division of Criminal 
Information, 407 N. Blount Street, Raleigh, North 
Carolina 27601. 

Ixeason for Proposed Action: These rules are 
being amended in order to clarify existing rules, 
modify CCH log requirements, and address new 
general certification requirements. 

Comment Procedures: Comments may be submit- 
ted in writing or may be presented orally at the 
public hearing. Written comments should be 
submitted to E. K. Best, Division of Criminal 
Information, 407 N. Blount Street, Raleigh, N. C. 
27601 by August 15th. 

CHAPTER 4 -DIVISION OF 
CRIMINAL INFORMATION 

SUBCHAPTER 4E - ORGANIZATION 
RULES AND FUNCTIONS 

SECTION .0100 - GENERAL PROVISIONS 

.0104 DEFINITIONS 

The following definitions shall apply throughout 
Chapter 4 of this Title: 

(1) "Administration of Criminal Justice" 
means the performance of any of the 
following activities: detection, apprehen- 
sion, detention, pretrial release, post-trial 
release, prosecution, adjudication, and 
correctional supervision or rehabilitation 



July 15, 1994 



530 



PROPOSED RULES 



of accused criminal offenders. The ad- 
ministration of criminal justice shall 
include criminal identification activities (9) 

and the collection, storage, and dissemi- 
nation of criminal history record informa- (10) 
tion. 

(2) "Administrative Message" means messag- 
es that may be used by DCI terminal 
operators to exchange official information 

of an administrative nature between (11) 

in-state law enforcement/criminal justice 
agencies and out-of-state agencies by 
means of NLETS. 

(3) "Authorized Requestor" means any per- (12) 
son who is authorized and/or approved to 

receive state and/or national criminal 
history data by virtue of being: 

(a) a member of an approved law enforce- (13) 
ment/criminal justice agency; or 

(b) any DCI or NCIC authorized non- 
criminal justice agency pursuant to local 
ordinance or a state or federal law. 

(4) "Automated Fingerprint Identification 
System" (AFIS) means a computer based 

system for reading, encoding, matching, (14) 

storage and retrieval of fingerprint minu- 
tiae and images. 

(5) "CCH" means computerized criminal (15) 
history. 

(6) "Criminal History Record Information" (16) 
(CHRI) means information collected by 

and maintained in the files of criminal 
justice agencies concerning individuals, 
consisting of identifiable descriptions, 
notations of arrest, detentions, indict- (17) 

ments or other formal criminal charges. 
This also includes any disposition, sen- 
tencing, correctional supervision, and 
release information. This term does not 
include identification information such as 
fingerprint records to the extent that such 
information does not indicate formal (18) 

involvement of the individual in the 
criminal justice system. 

(7) "Criminal Justice Agency" means the 
courts, a government agency, or any 
subunit thereof which performs the ad- 
ministration of criminal justice pursuant (19) 
to statute or executive order and which 

allocates over 50 percent of its annual 
budget to the administration of criminal 
justice. 

(8) "Criminal Justice Board" means a board 
composed of heads of law enforcement / (20) 
criminal justice agencies which have 



management control over a communica- 
tions center. 

"DCI" means Division of Criminal Infor- 
mation. 

"DCI Manual" means a manual contain- 
ing guidelines for users on the operation 
of the DCI equipment and providing 
explanations as to what information may 
be accessed through the DCI. 
"Direct Access" means an authorized 
agency has access to the DCI network 
through a DCI terminal or through a 
computer interface. 

"Disposition" means information on any 
action which results in termination or 
indeterminate suspension of the prosecu- 
tion of a criminal charge. 
"Driver's History" means information 
maintained on individual operators to 
include name, address, date of birth, 
license issuance and expiration informa- 
tion or control number issuance informa- 
tion, and moving vehicle violation con- 
victions. 

"Dissemination" means any transfer of 
information, whether orally, in writing, 
or by electronic means. 
"DMV" means the North Carolina Divi- 
sion of Motor Vehicles. 
"Expunge" means to remove criminal 
history record information from the DCI 
and FBI computerized criminal history 
and identification files pursuant to state 
statute. 

"Full Access" means the ability of a 
terminal to access those programs devel- 
oped and administered by the DCI for 
local law enforcement and criminal jus- 
tice agencies specifically including state 
and national CCH and driver history 
access. 

"Full-certification" means being operator 
certified with the ability and knowledge 
to use the DCI terminal accessing those 
programs which are developed and ad- 
ministered by DCI for local law enforce- 
ment and criminal justice agencies. 
"Hardware" means the physical computer 
equipment or devices and the peripheral 
equipment forming the DCI information 
processing system including the Automat- 
ed Fingerprint Identification System 
(AFIS). 

"Hot Files" means DCI/NCIC files which 
contain information on stolen and recov 



531 



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NORTH CAROLINA REGISTER 



July 15, 1994 



PROPOSED RULES 



ered property and wanted/missing per- 
sons as entered by agencies across the 
nation. (32) 

(21) "Inappropriate Message" means any 
message which is incomplete, unneces- 
sary, excessive, abusive, or not in keep- 
ing with the rules and regulations of (33) 
DCI. 

(22) "Incident Base" is a system used to col- 
lect criminal offense and arrest infbrma- (34) 
tion for each criminal offense reported. 

(23) "Indirect Access" means access to DCI 
through another agency's direct access 
terminal. 

(24) "In-service Certification" means an 
operator's certification program provided (35) 
by local departments and approved by 

DCI to certify and/or re-certify their 
employees. 

(25) "Interstate Identification Index (III)" (36) 
means the FBI's files containing 
identifying information on persons who 

have been arrested in the United States 

for which fingerprints have been (37) 

submitted to and retained by the FBI. 

(26) "Interface" means a method (either 
software or hardware) to communicate 
between two computers or computer 

systems. (38) 

(27) "IRKS" means an internal records 
keeping system which DCI makes 
available to North Carolina criminal 

justice agencies. Included in IRKS is a (39) 

jail record keeping system (JRKS). 

(28) "JRKS" means a jail record keeping 
system that aids agencies in accounting 
for their jail detainees. 

(29) "Limited Access" means the ability of a 

terminal to access those programs which (40) 

are developed and administered by the 

DCI for local law enforcement and 

criminal justice agencies specifically 

excluding state and national CCH and (41) 

driver history access. 

(30) "National Fingerprint File (NFF)" means 

an FBI maintained enhancement to the (42) 

Interstate Identification Index whereby 

only a single fingerprint card is submitted 

per state to the FBI for each offender at 

the national level. Arrest fingerprint (43) 

cards from the same state for subsequent 

arrests as well as final dispositions and 

expungements will be maintained at the 

state level. 

(31) "NCIC" means the National Crime 



Information Center which is maintained 
in Washington, DC. by the FBI. 
"Need-to-know" means for purposes of 
the administration of criminal justice or 
for purposes of criminal justice agency 
employment. 

"NLETS" means National Law Enforce- 
ment Telecommunications System, which 
is maintained in Phoenix, Arizona. 
"Non-criminal Justice Agency" means 
any agency created by law with the statu- 
tory authority to access State Bureau of 
Investigation criminal history files for 
purposes of non-criminal justice licensing 
or employment. 

"Non-criminal Justice Information" 
means information that does not directly 
pertain to the necessary operation of a 
law enforcement/criminal justice agency. 
"Official Record Holder" means the 
eligible agency that maintains the master 
documentation and all investigative sup- 
plements of the hot file entry. 
"Operator Identifier" means a unique 
identifier assigned by DCI to all certified 
operators which is used for gaining ac- 
cess to the DCI network and for the 
identification of certified operators. 
"Ordinance" means a rule or law promul- 
gated by a governmental authority espe- 
cially one adopted and enforced by a 
municipality or other local authority. 
"ORI" means originating routing identifi- 
er, which is a unique alpha numeric 
identifier assigned by NCIC to each 
authorized criminal justice agency, identi- 
fying that agency in all computer transac- 
tions. 

"Private Agency" means any agency that 
has contracted with a government agency 
to provide services necessary to the 
administration of criminal justice. 
"Re-certification" means renewal of an 
operator's initial certification every 24 
months. 

"Right-to-know" means for the right of 
an individual to inspect his or her own 
record or for other purposes as set forth 
by statute or court order. 
"Secondary Dissemination" means the 
transfer of CCH/ CHRI information to 
another agency in addition to the inquir 
ing agency, criminal justice agency or 
anyone legally entitled to receive such 
information who is outside the initial user 



\9:8 



NORTH CAROLINA REGISTER 



July 15, 1994 



532 



PROPOSED RULES 



agency. 

(44) "Servicing Agreement" means an agree- 
ment between a terminal agency and a 
non-terminal agency to provide DCI 
terminal services. 

(45) "State" means any state of the United 
States, the District of Columbia, the 
Commonwealth of Puerto Rico and any 
territory or possession of the United 
States. 

(46) "Statute" means a law enacted by a 
state's legislative branch of government. 

(47) "Switched Message" means messages that 
may be used by DCI terminal personnel 
to exchange official information between 
law enforcement/criminal justice agencies 
within North Carolina. 

(48) "Terminal" means a video screen with a 
typewriter keyboard used by DCI to 
accomplish message switching, DMV 
inquiries, functional messages, and DCI, 
NCIC, NLETS on-line file transactions. 
"Terminal Agency" means any agency 
that has obtained a DCI terminal. 
"UCR" means a Uniform Crime Report- 
ing program to collect a summary of 
criminal offense and arrest information. 
"Unapproved need-to-know" means any 
reason for requesting criminal or driver's 
history data which is not within the scope 
of authorized purpose codes as defined in 
the DCI on-line manual. 

(52) "User Agreement" means an agreement 
between a terminal agency and DCI 
whereby the agency agrees to meet and 
fulfill all DCI rules and regulations. 

Statutory Authority G.S. 114-10; 114-10.1. 

SECTION .0200 - REQUIREMENTS FOR 
ACCESS 

.0201 ELIGIBILITY FOR FULL OR 
LIMITED ACCESS TO THE 
DCI NETWORK 

(a) Eligibility for a full access DCI terminal or 
a computer interface with DCI is restricted to 
agencies which have obtained an NCIC full access 
ORI and have complied with Rule .0202 of this 
Section. 

(b) Eligibility for a limited access DCI terminal 
or computer interface with DCI is restricted to 
agencies which have obtained an NCIC or NLETS 
assigned limited access ORI and have complied 
with Rule .0202 of this Section. 



(49) 
(50) 

(51) 



(c) Any agency in this state desiring an ORI 
shall make a written request to the SBI Assistant 
Director for DCI. Accompanying the written 
request shall be a copy of the state or local law 
which establishes such agency and describes the 
agency's functions and authority. The SBI Assis- 
tant Director for DCI shall, on the basis of his 
findings, obtain an FBI/NCIC ORI or an NLETS 
assigned ORI . If the request is denied by the FBI 
and/or NLETS . the Assistant Director for DCI 
shall provide written findings to the requesting 
agency outlining the necessary elements to obtain 
an ORI. 

Statutory Authority G.S. 114-10; 114-10.1. 

.0202 MANAGEMENT CONTROL 
REQUIREMENTS 

Each ftril direct access DCI terminal, computer 
interface with the DCI, and those personnel who 
operate the terminal must be under the direct and 
immediate management control of a criminal 
justice agency, criminal justice board or an 
NCIC/DCI approved non-criminal justice agency. 
The degree of management control shall be such 
that the agency head, board or approved agency 
has the authority to: 

(1) set policies and priorities concerning the 
use and operation of terminals or 
computers accessing DCI; 

(2) hire, supervise, suspend or dismiss those 
personnel who will be connected with the 
operation or use of the terminal or 
computers accessing DCI; 

(3) restrict unauthorized personnel from 
access or use of equipment accessing 
DCI; and 

(4) assure compliance with all rules and 
regulations of DCI in the operation of 
equipment or use of all information 
received. 

Statutory Authority G.S. 114-10; 114-10.1. 

SECTION .0300 - AGREEMENTS 

.0303 SERVICING AGREEMENT 

(a) Any authorized agency pursuant to Rule 
.0201 of this Subchapter with direct access to 
DCI's computer which provides access to a 
non-terminal agency shall enter into a written 
Servicing Agreement with the serviced agency. 
The agreement shall include but not be limited to 
the following information: 

(1) the necessity for valid and accurate 



533 



9:8 



NORTH CAROLINA REGISTER 



July 15, 1994 



PROPOSED RULES 



information being submitted for entry 
into DCI; 

(2) the necessity for documentation to 
substantiate data entered into DCI; 

(3) the necessity of adopting timely mea- 
sures for entering, correcting or cancel- 
ing data in DCI; 

(4) DCI validation requirements; 

(5) the importance of confidentiality of 
information provided by DCI; 

(6) liabilities; 

(7) the ability to confirm a hit 24 hours a 
day; end 

(8) the necessity of using the ORI of the 
official record holder in record entries 
and updates; and 

(9) the necessity of using the ORI of the 
initial user when making inquiries. 

(b) DCI will provide a sample Servicing Agree- 
aent to any agency entering into said agreement. 

(c) The Servicing Agreement must be signed by 
ie servicing agency and the non-terminal agency, 
aust be notarized, and a copy must be forwarded 

DCI. 

(d) DCI shall be notified of any cancellations or 
hanges made in servicing agreements. 

tatutory Authority G.S. 114-10; 114-10.1. 

SECTION .0400 - DCI TERMINAL 
OPERATOR 

M02 CERTIFICATION AND 

RECERTTFICATION OF DCI 
OPERATORS 

(a) Authorized agency personnel, who arc as 



igncd the duty of operating the DCI terminal, 
aall bo certified by DCI within 120 days of 



mploymcnt with certification renewed at least 



very 2 4 months. Authorized agency personnel 
;ho are assigned the duty of operating a DCI 
;rminal or who operate a terminal accessing DCI 



ia an a pproved interface shall be certified within 
20 days from employment or assignment to 
rminal operation duties. Certification is to be 



warded based on achieving a test score of 80% or 
reater. Reeertification is required every 24 



lonths and can be obtained any time 90 days prior 



i expiration. Certification and reeertification is 
mailable by one of the following methods: 
(1) "General Certification" will be provided 
by DCI which certifies and recertifies 
an operator in the broad uses and capa- 
bilities available on the DCI network. 
The initial certification of an operator 



will be awarded upon attendance and 
successful completion of the Introduc- 
tion of DCI Network class. A General 
Certification student may also take on 
or more additional modules offered by 
DCI which teach the specific functions 
of the Network a pplicable to their job 
duties. An operator will only be autho- 
rized to perform those functions in 
which they have been trained and certi- 
fied. Successful reeertification can be 
accomplished by attending General 
Certification as described above or by 
enrolling on a "testing only" day until 
expiration of the current certification 
period. Failure of any module other 
than Introduction of DCI Network after 
the current certification period will 
require the student to attend the respec- 
tive class and test. An agency head 
may require an individual to successful- 
ly complete all or certain specified 
modules prior to receiving certification 
or reeertification. 
(2) {3) "Specialized Certification" certifies 
and re-certifies an operator through a 
specialized training program provided 
by employing agency or a host interface 
agency that provides computer access to 
DCI. Approval for a "Specialized 
Certification Program" will be based 
upon special training needs that are not 
met by the "General Certification Pro- 
gram" or the cost effectiveness for both 
the user agency and DCI. Agencies 
wanting to adopt a specialized program 
must submit a written proposal to DCI 
outlining the program to be provided to 
its personnel. The proposal must be 
submitted in standard format as re- 
quired by DCI which includes: types 
of participants, course contents, imple- 
mentation methods, instructional meth- 
ods, and program coordinator duties. 
DCI personnel will review the proposal 
and provide a written response of ap- 
proval or denial. If the proposal is 
denied, the agency may request an 
appeal hearing before the Advisory 
Policy Board. If the proposal is ap- 
proved, the program coordinator must 
submit training documentation to DCI 
for approval to meet DCI/NCIC train- 
ing standards and policies. The instruc- 
tor for each approved "Specialized 



:8 



NORTH CAROLINA REGISTER 



July 15, 1994 



534 



PROPOSED RULES 



Certification Program" must have 
successfully completed the North 
Carolina Law Enforcement Instructor 
Certification Course and must maintain 
an active DCI "General Certification" 
which includes all modules being 
offered in the "Specialized Certification 
Program". Recertification can be 
obtained by challenging and passing the 
approved "Specialized Certification 
Test" or by attending and passing 
classes as specified in the agencies 
approved "Specialized Certification 
Program". 
{b) — DCI issues three types of certification! 

ft) "Full certification" — certifies — a per s on 

with the ability and knowledge to u s e 
those programs which arc developed 
and admini s tered by DCI for local law 
enforcement — and — criminal — justice 

agencies. : fe — obtain — an — initial 

full certification, authorized per s onnel 
must attend not less than 2 8 hours of 
instruction concerning the proper u s e 
and control — of information obtained 
from a DCI terminal; 



m- 



'Re certification" renew s 



-&H 



certification at least every 2 4 months 
after the initial certification is issued. 
Ro certification — may — be obtained by 
attending the two day re certification 
clas s — if initial — certification — has — not 
expired or if an individual has obtained 

a 30 day exten s ion. If the initial 

certification has expired, he/she must 
attend — the — entire — initial — certification 
classroom in s truction. — An individual 
may retain his original certification date 
if re certification class is attended up to 
90 day s prior to the expiration date; 
fulu 

(b) Enrollment will be necessary for student 
attendance to any training or testing class for DCI 
operators. Enrollment will be requested and 
approved by the agency head or where a pplicable 
a communications supervisor of an authorized 
agency as defined in Rules .0201 and .0202 of this 
Subchapter and personnel must meet the 
management control requirements outlined in 
Section .0200 of this Subchapter. DCI will 
maintain enrollment for all "General Certification" 
classes and the administering agency will maintain 
enrollment for each "Special Certification" 
program. Enrollment shall be done on a form or 
such automated method provided by DCI. The 



enrollment procedure for "Special Certification'' 



will be defined within the a pproved plan and be 
responsive to the students needs which it serves. 
The enrollment procedure for General Certification 



or Recertification are: 

(1) A search of the training or testing class 
files shall be performed by the enrolling 



agency to determine whether a class has 
any vacancies. 
(2) If there is a vacancy, the enrollment 



will be entered into the class enrollment 



(21 



14) 



file in a manner prescribed by DCI. 
The enrolling agency must insure the 
student has been accepted in class prior 
to sending them to class- 
When classes become full, DCI is to 
assist agencies enroll their personnel by 



establishing waiting lists, identifying 



alternative classes or if the demand 



15} 



m 



warrants, establish and additional class. 
All Enrollments must be accepted by 
DCI at least two work days prior to the 
training or test class. 
A copy of each enrollment must be 
signed by the Agency Head, or 
applicable communication's supervisor. 



and maintained on file for two years by 



the enrolling agency. This document is 
subject to inspection by representatives 



of the Division as reasonable times. 



{e) — Enrollment will be neces s ary in order for 
DCI instructors to admit a s tudent in a DCI 



certification or — ro certification class. — EnrollmcB t 



procedures shall be as follows: 



m- 



A s earch of the certification class files 



sbaH — be — performe d — to — determine 
whether a class has any vacancies; 



(3) If there i s a vacancy, an enrollment 



form s igned by the department head, or 



when applicable, by a communication!) 



s upervi s or, which lists the individualo 



to be enrolled in the s pecific tminia g 
clas s s hall bo submitted to DCI no later 



than five working day s before the olaoo 



is scheduled to begin. — If for some 



reason — aH — per s onnel — cannot — be 



accommodated, — DGi — w4H — promptly 



contact — the — department — head — ef 



supervisor with an explanation of why 
all personnel cannot bo accommodated 



&- 



in the clas s requested; 

A search of the certification olaoo fil es 



sbaH — be — performed — by — tfee — ageaey 



enrolling personnel to verify that the 
requested personnel have been enrolled 



535 



9:8 



NORTH CAROLINA REGISTER 



July 15, 1994 



PROPOSED RULES 



in the olaoo requested; and 

(4) Late enrollment may be made by the 

department head or when applicable, by 
a communication s s upervisor, by cither 
s ending a s witch message to terminal 
PIH or by faxing a copy of a properly 
completed late enrollment form to DCI 
via phone number (91 9 ) 733 8 37 8 . 
feate — enrollment — by — switch — message 
must — iaehtde — the — name — and — s ocial 
s ecurity — number of personnel — te — be 

enrolled — m — the — class. Employees 

should not be sent to class until a 
confirmation — ef- — receipt — and — spaee 
availability — has — been — received — from 

DCI. The employee mu s t bring a 

completed enrollment form s igned by 
the agency head or when applicable, by 
the communication s supervisor, to clas s 
if the enrollment i s by s witch message. 
(c) New personnel hired or personnel newly 
assigned to duties of a terminal operator shall 



receive an indoctrination and hands-on training on 



the basic functions and terminology of the DCI 
system by. their own agency prior to attending 



certification class. Such personnel may operate a 
terminal accessing DCI while obtaining 



indoctrination if such personnel are directly 



supervised by a certified operator and are within 



the 120 day training period. 
{<$) — New personnel hired or personnel newly 



assigned the duties of a terminal operator shall 



receive an indoctrination and hands on training on 
the basic functions and terminology of the DCI 



s ystem by their own agency prior to attending 



oertification class. — Such personnel may operate a 



terminal acces s ing DGi while obtaining 



indoctrination — if- — sueh — personnel — are — directly 



supervi s ed by a certified operator. 

(d) Any individual who's certification has 
expired may be allowed to retest as a 



recertification student up_ to 90 days after their 



;xpiratioD. The individual will not be able to 



jperate the terminal during the time between 



Bcpiration and passing the recertification test(s). 



\ny individual who's certification has expired 
nore than 90 days will be required to attend and 
successfully complete training classes. 



{e) Following — the — instruction — ea — feH 

s e rtification, in service certification e? 



"0 certification classes, a tost will be administered 



ad a minimum grade of 8 percent must be 



tttaincd in order for a person to become operator 
iertificd. 



£e) Any agency which allows an individual to 



h8 



NORTH CAROLINA REGISTER 



operate a terminal accessing DCI who is not 
certified or who is not within the 120 day training 
period and directly supervised by a certified 
operator will be in violation of this Rule and 
subject to the provisions of 12 NCAC 4G .01020?) 
of this Chapter. 

(f) DCI will notify the employee' s s upervi s or of 
the grade attained. If 8 percent or more has been 
attained, the employee i s certified upon receipt of 
notice whether verbal or written. 

(f) Any agency personnel using a certified 
operator's identifier other than their own to gain 
access to DCI and violating a DCI procedure or 
for the purpose of concealing their identity will be 
in violation of this Rule and subject to the 
provisions of \2 NCAC 4G .0102(c) of this 
Chapter. 

{g) — Any agency which allows an individual to 
operate a terminal or interface terminal accessing 
DCI who i s not certified or who i s not within the 
120 day training period and directly supervised by 
a certified operator will be in violation of thi s Rule 
and subject to the provisions of Subchapter 4 G 
Rule .0102(b) of this Chapter. 

(g) When a DCI certified operator leaves the 
employment of their agency, the Agency Head will 
notify DCI within 24 hours. This notification is to 
allow DCI to immediately remove that operator's 
identification in the network until such time as 
they are employed by another authorized agency. 

{h) — Any agency personnel u s ing a certified 
operator's identifier other than their own to gain 
access to DCI and violating a DCI procedure will 
be in violation of this Rule and s ubject to the 
provi s ions of Subchapter 4 G Rule .0102(c) of thi s 
Chapter. 

Statutory Authority G.S. 114-10; 114-10.1. 

SUBCHAPTER 4F - SECURITY 
AND PRIVACY 

SECTION .0200 - DCI/NCIC HOT FILES 



.0201 DOCUMENTATION AND 
ACCURACY 

(a) Law enforcement and criminal justice 
agencies have the capability to enter 
stolen/recovered property and wanted/missing 
persons into the DCI/NCIC hot files. Any record 
entered into the hot files must be documented. 
The documentation required is: 

(1) a theft report of items of stolen 
property; 

(2) an active warrant for the entry of 



July 15, 1994 



536 



PROPOSED RULES 



wanted persons; 

(3) a missing person report and, if a 
juvenile, a written statement from a 
parent, spouse, family member, or legal 
guardian verifying the date of birth and 
confirming that a person is missing; or 

(4) a medical examiner's report for an 
unidentified dead person entry. 

fb) AH DCI/NCIC hot file entries must be 
complete and accurately reflect the information 
contained in the agency's investigative 
documentation at the point of initial entry or 
modification. This process must be checked by a 
second party who will initial and date a copy of 
the record indicating accuracy has been 
determined. 



Statutory Authority G.S. 114-10; 114-10.1. 

SECTION .0400 - COMPUTERIZED 

CRIMINAL HISTORY ACCESS AND 

USE REQUIREMENTS 

.0401 DISSEMINATION OF CCH 
RECORDS 

(a) Except as provided by Rules .0402, .0404, 
.0406, of this Section criminal history record 
information obtained from or through DCI, NCIC, 
or NLETS shall not be disseminated to anyone 
outside of those agencies eligible under Subchapter 
4E Rule .0201(a) of this Chapter. Any agency 
assigned an ORI number with a suffix of "P" a 
limited access ORI shall not obtain criminal history 
record information. Any agency requesting 
criminal history record information which has not 
received an ORI pursuant to Subchapter 4E Rule 
.0201(a) of this Chapter should be denied access 
and referred to the SBI Assistant Director for DCI. 

(b) Criminal history record information is 
available to eligible agency personnel only on a 
"need-to-know" or "right-to-know" basis as 
defined in Subchapter 4E Rule .0104 of this 
Chapter. 

(c) The use or dissemination of computerized 
criminal history for unauthorized purposes will be 
in violation of this Rule and subject to the 
provisions of Subchapter 4G Rule .0102(k) and (1) 
of this Chapter. 

(d) Eaeh — criminal justice agency obtaining 
criminal hi s tory record information through DCI 
shall — maintain — a — leg — of dissemination — en — aH 
positive respon s es (indicating a criminal record) 
for a period of not less than one year from the date 
the record was obtained. — The documentation log 
mu s t contain the following information: 



(4)- 






date of inquiry; 

name or initials of terminal operator; 

name or record subject; 

state identification number (SID) or FB I 

number of the record subject; 

me s sage — k-ey used — te- 



obtain 



informo tieaf 
purpose — (actual — seed — treri — criminal 
investigation, taxi cab permit, etc -^t 
name of person r equesting informati o n; 



(8) name of secondary dis s emination, if 

ftnyr 

DCI shall maintain an automated log of 
CCH/CHRI inquiries for a period of not less than 
i year from the date of inquiry. The automated 
log will contain the following information as 
su pplied by the operator on the inquiry screen and 
will be made available on-line to the inquiring 
agency; 

date of inquiry; 

name or record subject: 



£21 
£31 



£41 

£51 
£61 
£H 



£81 



(e) 



state identification number (SID) or FBI 
number of the record subject: 
message key used to obtain 
information: 
purpose code: 
operators initials; 

(Attention field) name of person and 
agency requesting information who is 
the initial user of the record, and if 
a pplicable; 

(Attention 2 field) name of person and 
agency requesting information who is 
outside of the initial user agency. 
Di ss emination logs s hall be available for 
audit or inspection by the SBI As s i s tant Director 
for DCI or his designee at s uch time as they may 
require, as provided in Section .0 8 00, Rule .0 8 01 
of this Subchapter. Criminal justice agencies 
making secondary disseminations of CCH/CHRI 
obtained through DCI shall maintain a log of the 
dissemination in a case file or other a ppropriate 
medium. This log must identify the name of the 
recipient and their agency. 

(f) Direct or indirect access agencies with a DCI 
terminal responding to an out of state request for 
criminal — hi s tory — reeerd — informati on — through 
NLETS s hall only respond with criminal history 

record informati ea received within their 

jurisdiction — and — maintained — in — their — fitesr 
Out of s tate — agencies — reque s ting — a — s tatewide 
c r iminal reco r d check should be directed to use the 
state automated file. It shall be the duty of each 
criminal justice agency obtaining criminal history 



537 



9:8 



NORTH CAROLINA REGISTER 



July 15, 1994 



PROPOSED RULES 



ecord information through PCI to conduct a 
nonthlv audit of their automated CCH log as 



121 



provided by PCI. 

(1) This audit should include but is not 
limited to a review for unauthorized 
inquiries and disseminations, improp er 
use of agency ORI's. agency names, 
and purpose codes- 
Printouts of the PCI automated CCH 
log must be signed or initialed by a 
designated representative and dated 
indicating a monthly review has oc- 
curred. These logs must be maintained 
on file for I year from the date of the 
inquiry. 

Any misuse of possible violations of 
PCI policy must be reported to PCI. 



13) 



(g) Agencies that fail (failure i s defined as more 
ion 10 percent deficient) to record all required 



ate on the log of d i sseminat i on as required in 
tamgraph (d) of this Rule will bo in violation of 



ubchaptcr 4 G Rule .0102(m) of this Chapter. 
"rintouts of PCI automated CCH logs and any 



econdarv dissemination logs shall be available for 



udit or inspection by the SBI Assistant Pi rector 
n PCI or his designate at such time as they may 
xjuire as provided in 12 NCAC 4F .0801 of this 



'ubchapter. 



(h) Agencies that fail (failure i s defined as more 
ion 10 percent deficient) to maintain a log of 



i ss cmination of "po s itive" criminal history record 



lformation obtained through PCI for a period of 



no year as required in Paragraph (d) of this Rule 



'ill be in violation of thi s Rule and subject to the 



revisions of Subchapter 4 G Rule .0102(n) of thi s 



■hapten Agencies that fail to comply with the 
revisions of 12 NCAC 4F .0401(d) will be in 



iolation and subject to the sanctions of _12 NCAC 



G .0102(n). 

Agencies that fail to comply with the provisions 



F Subchapter 4F .0401 £e) and/or (f) wUl be 
iviolation and subject to the sanctions of 12 



CAC 4G .0102(m). 



{i) Pirect or indirect access agencies responding 
an out of state request for criminal history 
cord information through NLETS shall only 



spond with criminal history record information 



ceived within their jurisdiction and maintained in 



eir files. Out of state agencies requesting a state 



ide criminal record check should be directed to 
se the state automated file. 

atutory Authority G.S. 114-10; 114-10.1. 

SUBCHAPTER 4G - PENALTIES 



AND ADMINISTRATIVE HEARINGS 

SECTION .0100 - DEFINITIONS 
AND PENALTY PROVISIONS 

.0102 PENALTY PROVISIONS 

(a) Insecure location of DCI terminal pursuant 
to 12 NCAC 4F .0101 shall result in the following 
penalties: 

(1) First Offense - Agency Penalty (Warn- 
ing) with conditions that the terminal be 
secured within 48 hours; 

(2) Second Offense - Agency Penalty (Rep- 
rimand) with conditions that the SBI 
Assistant Pirector for PCI and the 
agency head must establish an agreed 
time period within which the terminal 
can be secured and; 

(3) Third Offense - Agency Penalty (Sus- 
pension) resulting in suspended access 
to computerized criminal history and 
drivers history data until the terminal is 
secured. 

(b) Uncertified operator pursuant to 12 NCAC 
4E .0402 shall result in the following penalties: 

(1) First Offense - Agency Penalty (Repri- 
mand); 

(2) Second Offense - Agency Penalty (Pro- 
bation) and limited operational time; 

(3) Third Offense - Agency Penalty (Sus- 
pend Services) with full service re- 
moved for six months from the date of 
the hearing and probation extended for 
one year from date of reinstatement 
and; 

(4) Fourth Offense - Agency Penalty (Sus- 
pend Services) resulting in the removal 
of the terminal. 

(c) Unauthorized use of a PCI certified operator 
identifier pursuant to 12 NCAC 4E .0402 shall 
result in the following penalty: 

First Offense - Individual Penalty (Revocation) 
and/or seek criminal prosecution under any appli- 
cable state or federal law for unauthorized access 
to a computer system. 

(d) Transmission of non-criminal justice related 
information over a PCI terminal pursuant to 12 
NCAC 4F .0102 shall result in the following 
penalties: 

(1) First Offense - Individual Penalty 
(Warning); 

(2) Second Offense - Individual Penalty 
(Probation) and Agency Penalty 
(Warning) if on same operator; 

(3) Third Offense - Individual Penalty 



* 



NORTH CAROLINA REGISTER 



July 15, 1994 



538 



PROPOSED RULES 



(Suspended Certification) and Agency 
Penalty (Reprimand) if on the same 
operator as a second offense and; 
(4) Fourth Offense - Individual Penalty 
(Revocation) and Agency Penalty 
(Probation) if on the same operator as a 
third offense. 

(e) Failure by the original servicing agency 
(agency with direct access) to comply with the 
penalties that are placed upon the non-terminal 
(indirect access) agency pursuant to 12 NCAC 4E 
.0203 shall result in the following penalty: 

First and Subsequent Offenses - The servicing 
agency (agency providing direct access) will 
receive the same penalty that should have been 
imposed upon the non-terminal (indirect access) 
agency. 

(f) Dissemination of driver's history by a 
certified operator to an unauthorized requestor 
pursuant to 12 NCAC 4F .0701 shall result in the 
following penalties: 

(1) First Offense - Individual Penalty 
(Probation); 

(2) Second Offense - Individual Penalty 
(Suspension) and Agency Penalty 
(Warning) and; 

(3) Third Offense - Individual Penalty 
(Revocation) . 

(g) Unauthorized use of driver's history by 
authorized personnel other than a certified operator 
pursuant to 12 NCAC 4F .0701 shall result in the 
following penalties: 

(1) First Offense - Agency Penalty 
(Warning) with the agency submitting a 
written response to the SBI/DCI of a 
plan and date by which departmental 
training is complete to prevent further 
violations of this Rule; 

(2) Second Offense - Agency Penalty 
(Reprimand) and; 

(3) Third Offense - Agency Penalty 
(Suspension) of driver's history for six 
months. 

(h) Failure (if entire agency is more than 10 
percent deficient) to maintain a log of 
dissemination on "positive" driver's histories 
obtained through DCI for a period of one year 
from the date the record was received pursuant to 
12 NCAC 4F .0701 shall result in the following 
penalties: 

(1) First Offense - Individual Penalty 
(Warning) to each operator that 
contributed with a re-audit after 90 
days; 

(2) Second Offense - Individual Penalty 



(Probation) and Agency Penalty 
(Warning); 

(3) Third Offense - Individual Penalty 
(Suspension of Certification) and 
Agency Penalty (Reprimand) and; 

(4) Fourth Offense - Individual Penalty 
(Revocation) and Agency Penalty 
(Probation). 

(i) Failure to utilize the proper CCH message 
key in accessing III whether or not resulting in an 
unauthorized dissemination pursuant to 12 NCAC 
4F .0401, .0402, .0404, .0405, and .0407 shall 
result in the following penalties: 

(1) First Offense - Individual Penalty 
(Warning) with condition of agency 
re-audit after 90 days; 

(2) Second Offense - Individual Penalty 
(Probation) with the agency submitting 
a written response to the SBI/DCI of a 
plan and date by which training is 
complete to prevent further violations 
of this Rule; 

(3) Third Offense - Individual Penalty 
(Suspension of Certification) and 
Agency Penalty (Reprimand) and; 

(4) Fourth Offense - Individual Penalty 
(Revocation). 

(j) Improper use of CCH data in denial or 
revocation of a license or permit pursuant to 12 
NCAC 4F .0406 shall result in the following 
penalties: 

(1) First Offense - Agency Penalty 
(Reprimand); 

(2) Second Offense - Agency Penalty 
(Probation); 

(3) Third Offense - Agency Penalty 
(Suspension of Services) with access 
suspended to computerized criminal 
history non-criminal justice purposes 
for a period of six months and; 

(4) Fourth Offense - Agency Penalty 
(Suspension of Services) with access 
suspended to computerized criminal 
history non-criminal justice purposes 
for one year. After one year of 
suspension the agency must seek 
reinstatement by appearing before the 
Advisory Policy Board. 

(k) Dissemination of CCH by a certified 
operator for an unauthorized purpose or to an 
unauthorized requestor pursuant to 12 NCAC 4E 
.0203; 4F .0401, .0404, .0405, and .0407 shall 
result in the following penalties: 

(1) First Offense - Individual Penalty 
(Probation); 



539 



9:8 



NORTH CAROLINA REGISTER 



July IS, 1994 



PROPOSED RULES 



(2) Second Offense - Individual Penalty 
(Suspension of Certification) and 
Agency Penalty (Warning) and; 

(3) Third Offense - Individual Penalty 
(Revocation). 

(1) Unauthorized use or dissemination of CCH 

by authorized personnel other than the certified 

operator pursuant to 12 NCAC 4F .0401, .0404, 

0405, and .0407 shall result in the following 

penalties: 

(1) First Offense - Agency Penalty 
(Reprimand) with the agency submitting 
a written response to the SBI/DCI of a 
plan and date by which training is 
complete to prevent further violations 
of this Rule with a re-audit to be 
conducted 90 days after training is 
complete; 

(2) Second Offense - Agency Penalty 
(Suspension) of CCH services for a 
period of 90 days and; 

(3) Third Offense - Agency Penalty 
(Suspension) of CCH services for a 
period of six months. 

(a») Failure (if the entire agency i s more than 10 



aerocnt deficient) to log all of the required fields 
Ml the CCH dis s emination log pursuant to 12 



VJCAC 4 F .0 4 01 s hall result in the following 



penaltie s ; 

(4} First — Offense Individual — Penalty 

(Warning) with a re audit after 90 days; 

(2) Second Offense Individual Penalty 

(Probation) and Agency Penalty 

(Warning); 

{3) Third — Offense Individual — Penalty 

( S uspension — of- — Certification) — and 
Agency Penalty (Reprimand) and; 

( 4 ) Fourth — Offense Agency — Penalty 

(Probation) 
(m) Failure to maintain and/or audit the PCI 
lutomated CCH log or a tog of secondary 



lissemination pursuant to 12 NCAC 4F .0401 {e) 



n ifj shall result in the following penalties: 

First Offense = Agency Penalty 



01 

m 

13} 
141 



(Warning); 
Second Offense 
(Reprimand): 
Third Offense 



; Agency Penalty 



n) 



(Probation): 
Fourth Offense 
(Suspension of Service). 
Failure (if the entire agency is more than 10 



Agency 
Agency 



Penalty 
Penalty 



Jefeent — deficient) — te — maintain a — log — ef 



liooemination on "positive" criminal history record 
nformation obtained through DCI for a period of 



one year from the date the record was received of 
the operator to properly fill out a CCH/CHRI 
inquiry screen pursuant to 12 NCAC 4F .0401 
shall result in the following penalties: 

(1) First Offense - Individual Penalty 
(Warning) to each operator that contrib- 
uted and an Agency Penalty (Warning) 
with condition of and provisions autho- 
rizing an a gency re-audit after 90 days; 

(2) Second Offense - Individual Penalty 
(Probation) and — aa — Agency — Penalty 
(Reprimand) — with — the — ageney — head 
s ubmitting a letter to DCI on a monthly 
ba s i s (for 12 consecutive months) vcri 
fying that a s elf audit has boon conduct 
ed-. — Failure to submit thi s verification 
letter will be considered a broach of the 
u s er s agreement and; with the condition 
that the agency submit a written re- 
sponse to the SBI/DCI of a plan and 
date by which training is complete to 
prevent further violations of this Rule: 

(3) Third Offense - Individual Penalty 
(Suspension of Certification) and an 
Agency Penalty ( Su s pension of Scrvio 
ea) suspending CCH for s ix month s. 
(Reprimand) and; Fourth Offense ; 
Individual Penalty (Revocation). 

(o) Failure of the agency maintaining manage- 
ment control over the certified operator to notify 
SBI/DCI of the employee's resignation or termina- 
tion of employment pursuant to \2 NCAC 4E 
■0402(g): 

First Offense : Agency Penalty (Warn- 



01 
121 
01 

{41 



ing) with condition of agency reaudit 
after 90 days: 

Second Offense ; Agency Penalty (Rep- 
rimand) with condition of agency 
reaudit after 90 days; 
Third Offense - Agency Penalty (Proba- 
tion) and; 

Fourth Offense ; Agency Penalty (Sus- 
pended Service). 



Statutory Authority G.S. 114-10; 114-10.1. 

TITLE 16 - DEPARTMENT OF 
PUBLIC EDUCATION 

Notice is hereby given in accordance with G.S. 
150B-21.2 that the State Board of Education 
intends to amend rules cited as 16 NCAC 6D 
.0101 and .0103. 



>:8 



NORTH CAROLINA REGISTER 



July 15, 1994 



540 



PROPOSED RULES 



1 he proposed effective date of this action is July 
1, 1995. 

1 he public hearing will be conducted at 9:30 
a.m. on August 15, 1994 at the Education Build- 
ing, 301 N. Wilmington Street, Room 224, Ra- 
leigh, NC 27601-2825. 

Reason for Proposed Action: 
16 NCAC 6D .0101 - Amendment simplifies lan- 
guage in definitions. 

16 NCAC 6D .0103 - Amendment replaces compe- 
tency test with more challenging measure of stu- 
dent performance. 

Lsomment Procedures: Any interested person may 
present comments orally at the hearing or in 
writing prior to or at the hearing. Comments will 
by accepted thru August 15, 1994. 

CHAPTER 6 - ELEMENTARY AND 
SECONDARY EDUCATION 

SUBCHAPTER 6D - INSTRUCTION 

SECTION .0100 - CURRICULUM 

.0101 DEFINITIONS 

As used in this Subchapter: 

(1) "Competency goals" means broad state- 
ments of general direction or purpose. 

(2) "Course unit" means at least 150 clock 
hours of instruction. LEAs may award 
credit for short courses in an amount 
corresponding to the fractional part of a 
total unit. 

(3) "Curriculum guide" means a document 
prepared by the Department for each 
subject or area of study listed in the 
standard course of study and many com- 
monly offered electives, including com- 
petency goals, objectives and suggested 
measures. 

(4) "Diploma" means that document by 
which the LEA certifies that a student has 
satisfactorily completed all state and local 
course requirements and baa passed the 
North Carolina Competency Test SBE 
graduation requirements as set out in 
Rule .0103 of this Section and all local 
course requirements . 

(5) "Graduation" means satisfactory comple- 



tion of all s tate and local oouroo require - 
ments and achievement of a paooing score 
on the North Carolina Competency Test 
SBE graduation requirements as set out in 
Rule .0103 of this Section and all local 
course requirements . 

(6) "Measures" means a variety of sugges- 
tions for ways in which the student may 
demonstrate ability to meet an objective. 

(7) "Objective" means a specific statement of 
what the student will know or be able to 
do. 

(8) "Proper test administration" means ad- 
ministration of tests adopted by the SBE 
for students, in accordance with Section 
.0300 of this Subchapter. 

(9) "Special education student" means a 
student enrolled in or eligible for partici- 
pation in a special education program. 

(10) "Standard course of study" means the 
program of course work which must be 
available to all public school students in 
the state. 

(11) "Transcript" means that document which 
provides a record of: 

(a) All courses completed and grades 
earned; 

(b) scores achieved on standardized tests; 
and 

(c) participation in special programs or any 
other matter determined by the LEA. 

Statutory Authority G.S. 115C-81. 

.0103 GRADUATION REQUHtEMENTS 

(a) In order to graduate and receive a high 
school diploma, public school students who first 
enter the ninth grade in or after the 1995-96 school 



year must meet the requirements of Paragraph (b) 
of this Rule and attain passing scores on competen 



cy teats adopted by the SBE and ad mini etc red by 
the LEA. the end-of-course test in core standard 
course of study courses (Algebra L, Biology. 
Economic/Legal/Political Systems. English L 
physical science, and U.S. History). Students who 
satisfy all state and local graduation requirements 
but who fail the competency tests to attain passing 
scores on the end-of-course test for each core 
standard course of study course will receive a 
certificate of attendance and transcript and shall be 
allowed by the LEA to participate in graduation 
exercises. 



m- 



LEAs scope the competency teats sepa - 
rately according to pas s ing aoofco o f 
criterion level s approved by the S BE: 



541 



9:8 



NORTH CAROLINA REGISTER 



July 15, 1994 



PROPOSED RULES 



(2) LEAs may change the form of content 

of the competency tests where ncces 
s ary to allow s pecial education s tudents 
to participate, but these s tudents must 
achieve a level of performance on each 
test equal to the passing scores or crito 
ria levels. 

0) Special education s tudents may apply in 

writing to be exempted from taking the 
competency tests. — Befor e it approves 
the request, the LEA mu s t as s ure that 
the parents, or the child if aged 1 8 or 
older, understand that each student must 
pass the competency tests to receive a 
high school diploma. 

{4} Any s tudent who has failed to pass the 

competency tests by the end of the last 
s chool month of the year in which the 
s tudent's clas s graduates may rece i ve 
additional — remedial — in s truction — and 
continue to take the competency te s ts 
during regularly scheduled testing until 
the s tudent reaches maximum school 
ager 
(b) In addition to the requirements of Paragraph 
(a), students must successfully complete 20 course 
units in grades 9-12 as specified in this Paragraph: 

(1) Effective with the class entering ninth 
grade for the 1992-93 school year, the 
20 course units must include: 

(A) four units in English; 

(B) three units in mathematics, one of 
which must be Algebra I; 

(C) three units in social studies, one of 
which must be in government and 
economics, one in United States histo- 
ry and one in world studies; 

(D) three units in science, one of which 
must be biology and one a physical 
science; 

(E) one unit in physical education and 
health; and 

(F) six units designated by the LEA, 
which may be undesignated electives 
or courses designated from the stan- 
dard course of study. 

(2) LEAs may count successful completion 
of course work in the ninth grade at a 
school system which does not award 
course units in the ninth grade toward 
the requirements of this Rule. 

(3) LEAs may count successful completion 
of course work in grades 9-12 at a 
summer school session toward the 
requirements of this Rule. 



(4) LEAs may count successful completion 
of course work in grades 9-12 at an 
off-campus institution toward the re- 
quirements of this Rule. No high 
school may approve enrollment in 
post-secondary institutions during the 
regular school year in excess of five 
percent of its enrollment in grades 
10-12 except as allowed by the SBE. 
23 NCAC 2C .0301 governs enrollment 
in community college institutions, 
(c) Effective with the class entering ninth grade 
for the 1992-93 school year, special needs students 
as defined by G.S. 115C-109, excluding academi- 
cally gifted, speech-language impaired, orthopedi- 
cally impaired, other health impaired, and preg- 
nant, who do not meet the requirements for a high 
school diploma will receive a graduation certificate 
and shall be allowed to participate in graduation 
exercises if they meet the following criteria: 

(1) successful completion of 20 course 
units by general subject area (4 Eng- 
lish, 3 math, 3 science, 3 social studies, 
1 health and physical education, and 6 
local electives) under Paragraph (b) of 
this Rule. These students are not re- 
quired to pass the specially designated 
courses such as Algebra 1, Biology or 
United States history; 

(2) completion of all IEP requirements. 

Authority G.S. 115C-12(9)c; 115C-81{a); 
115C-180; N.C. Constitution, Article IX, Sec. 5. 

TITLE 19A - DEPARTMENT 
OF TRANSPORTATION 

Notice is hereby given in accordance with G.S. 
150B-21.2 that the North Carolina Division of 
Motor Vehicles intends to adopt rules cited as 19 A 
NCAC 03D .0517- . 0552, which was published in 
the Register, Volume 9, Issue 4, page 276. The 
agency published notice on the subject matter. 

JL he proposed effective date of this action is 
October I, 1994. 

Ixeason for Proposed Action: These Rules are 
proposed for adoption to implement the vehicle 
safety and emissions inspection program. 

Ksomment Procedures: Written comments should 



h8 



NORTH CAROLINA REGISTER 



July 15, 1994 



542 



PROPOSED RULES 



be directed Emily Lee, APA Coordinator, NCDOT, 
P.O. Box 25201, Raleigh, NC 27611, telephone 
(919) 733-2520. Comments must be received by 
August 15, 1994. 

CHAPTER 3 - DIVISION OF 
MOTOR VEHICLES 

SUBCHAPTER 3D - ENFORCEMENT 
SECTION 

SECTION .0500 - GENERAL 

INFORMATION REGARDING 

SAFETY INSPECTION OF 

MOTOR VEHICLES 

.0517 DEFINITIONS 

For purposes of this Section, these words and 
phrases shall have the following meanings, except 
in those instances where the context clearly indi- 
cates a different meaning. 



ill 



1<D 
fbl 

i£l 
Id} 
ie) 

in 
m 



13) 



Abbreviations: 



Abbreviations used in 
shall have the following 



14) 



15} 



these Rules 
meanings: 

CO z Carbon Monoxide. 

G.V.W.R. : Gross Vehicle Weight 

Rating, 

HC - Hydrocarbons. 

PSI : Pounds Per Square Inch. 

NOx ; Nitrogen Oxides. 

PPM - Parts Per Million. 

% z Percent. 
Ambient Air: That portion of the atmo- 
sphere surrounding human, animal and 
plant life- 
Authorized Station: An established place 
of business duly licensed by. the North 
Carolina Division of Motor Vehicles to 
conduct inspection of safety equipment. 
exhaust emissions, and air pollution 
control devices as required by the inspec- 
tion laws- 
Base: The place where a vehicle is most 
frequently dispatched from, garaged, 
serviced, maintained, operated or other- 
wise controlled. If any vehicle is located 
in or operated from a county participating 
in the safety emission program continu- 
ously for a period of 30 days, said vehi- 
cle shall be considered based within said 
county. 

Carbon Monoxide: (CO) A colorless, 
odorless, highly toxic gas that is a nor- 
mal by-product of incomplete fuel com- 
bustion. 



16) 



ID 



18) 



19) 
HO) 



im 



(12) 



(13) 



(14) 



Certified Inspection Mechanic: A person 
who has completed the required 
course(s). who has passed a written 
examination approved by the North Caro- 
lina Division of Motor Vehicles, and who 
has been issued an inspection mechanic 
license by. the Division of Motor Vehi- 
cles. 

Crankcase Emissions: Air contaminants 
emitted into the atmosphere from any 
portion of the engine crankcase ventila- 
tion or lubrication system. 
Current Year Model: The production 
period of new motor vehicles as designat- 
ed by the manufacturer in the calendar 
year in which the period ends. If the 
manufacturer does not designate a pro- 
duction period, the model year shall 
mean the 12-month period beginning 
January of the year in which production 
began. 
Diagnostic Equipment: Tools or machines 



used to diagnose engine performance. 
Emission: The act of a motor vehicle 
emitting into the atmosphere any air 
contaminants which may include carbon 
monoxide, hydrocarbons, or nitrogen 
oxides. 

Established Place of Business for Safe- 
ty/Emissions Inspection: A permanent 
structure owned either in fee or leased by 
a licensee, which has sufficient space to 
test and inspect one or more motor vehi- 
cles for which an inspection sticker is 
being sought and to accommodate the 
office or offices of an authorized station 
to provide a safe place for maintaining 
the records and stickers of such autho- 



rized station, and at which location the 
business shall be open during normal 
business hours to conduct safety inspec- 
tions and exhaust emissions tests and 
make available to authorized agents of 
the Division of Motor Vehicles all re- 
cords and required equipment for exami- 
nation and testing- 
Exhaust Emissions: Air contaminants 
emitted into the atmosphere from any 
opening downstream from the exhaust 
parts of a motor vehicle engine. 
Exhaust Gas Analyzer: A device for 
sensoring and measuring the amount of 
air contaminants in the exhaust emitted 
from a motor vehicle. 
Heavy Duty Motor Vehicle: A motor 



543 



9:8 



NORTH CAROLINA REGISTER 



July 15, 1994 



PROPOSED RULES 



vehicle which is designed primarily for: 

(a) The transportation of property and 
which is rated at more than 8.500 
GVWR. 

(b) The transportation of persons and which 
has a capacity of more than 12 persons. 

(c) Use as a recreational motor vehicle 
which is rated at more than 8.500 
GVWR. 

(d) Use as an off-road utility vehicle. 

(15) Hydrocarbons: A family of compounds 
containing carbon and hydrogen in vari- 
ous combinations found especially in 
fossil fuels. 

(16) Inspection: The safety equipment or 
exhaust emissions inspection of motor 
vehicles required by G.S. 20. Part 2, 
Article 3A. 

(17) Inspection Sticker: Sticker which when 
properly executed indicates that the vehi- 
cle to which it is attached has been in- 
spected and found to meet the require- 
ments of the inspection laws. 

(18) Inspection Laws: G.S. 20. Part 2. Article 
3A and rules a pproved by. the Governor 
and duly adopted by the Commissioner of 
Motor Vehicles. 

(19) Inspection/Maintenance (I/M): A strategy 
to reduce emissions from in-use motor 
vehicles by identifying vehicles that need 
emission related maintenance and requir- 
ing that such maintenance be performed. 

(20) Inspection Period: The month during 
which the motor vehicle would normally 
be required to be inspected by G.S. 20. 
Part 2. Article 3A. 

(21) License: Notwithstanding G.S. 20- 
4.01(17). the license issued by the 
Commissioner of Motor Vehicles which 
is required for a person to operate a 
safety equipment exhaust emission 
inspection station. 

(22) Light Duty Motor Vehicle: A motor 
vehicle which is designed primarily for: 

(a) Transportation of property and which is 
rated at or Jess than 8.500 GVWR by 
the manufacturer: or 

(b) Use in the transportation of persons and 
which has a capacity of L2 persons or 
fewer. 

(23) Motor Vehicle: Every vehicle which is 
either self-propelled or designed to run 
upon the highways while being pulled by 
a self-propelled vehicle. 

(24) Nitrogen Oxides: A gas formed in great 



part from atmospheric nitrogen and 
oxygen when combustion occurs under 
high temperature and high pressure, as in 
an internal combustion engine. 

(25) Recreational Motor Vehicle: A vehicle 
which is designed primarily to provide 
temporary or permanent living quarters 
for travel, camping, or other recreational 
use. 

(26) Registered Owner of a Vehicle: The 
individual. group of individuals, 
partnership, firm, company, corporation, 
association. trust. estate. political 
subdivision, administrative agency, public 
or quasi-public corporation, or any other 
iegal entity in whose name the license has 
been issued and whose name a ppears on 
the registration for such vehicle. 

(27) Revocation: Notwithstanding G.S. 20- 
4.01(36). the termination of a license 
issued by the Division of Motor Vehicles 
to a safety equipment exhaust emission 
inspection station. 

(28) Section: The Enforcement Section of the 
Division of Motor Vehicles. 

(29) Self-Inspector: A person, firm or 
corporation so designated by the 
Commissioner for the purpose of 
inspecting only those vehicles owned or 
operated by such person, firm or 
corporation. 

(30) Standard: A standard of performance 
adopted in these Rules. 

(31) Station: A place of business duly licensed 
by the Commissioner of Motor Vehicles 
to conduct inspections of motor vehicles 
as required by the inspection laws. 

(32) Suspension of Safety/Emission License: 
The temporary withdrawal of a license 
issued by the Division of Motor Vehicles 
to a safety equipment exhaust emission 
inspection station for a definite period of 
time. 

(33) Tampering: Rendering inoperative, or the 
intentional maladjustment of any device 
installed on a motor vehicle designed or 
intended to control the amount of 
emissions from a vehicle. 

(34) Waiver: A document issued by the 
Commissioner of Motor Vehicles or his 
designated agent exempting a particular 
motor vehicle from the requirements of 
the emission inspection. 

Statutory Authority G.S. 20-2; 20-39. 



NORTH CAROLINA REGISTER 



July 15, 1994 



544 



PROPOSED RULES 



.0518 LICENSING OF SAFETY OR 
EXHAUST EMISSIONS 
INSPECTION STATIONS 

(a) An application for licensing as a Safety 
Equipment or Safety Equipment Exhaust Emissions 
Inspection Station shall be made on forms 
furnished by the Division of Motor Vehicles and 
filed with the Enforcement Section. Motor 
Vehicles Building. 1100 New Bern Avenue. 
Raleigh. North Carolina. 27697. telephone 919- 
733-0133. 

(b) "Adequate facilities as to space" means: 

(1) The applicant shall have a specified 
area used primarily for repair of motor 
vehicles. 

£2} The applicant shall have at least 45 
lineal feet of approximately level floor 
surface at least 10 feet wide when using 
a light chart for testing lights, or at 
least 25 lineal feet of a pproximately 
level floor surface at least 10 feet wide 
when using a light testing machine. 
Dirt floors are not acceptable. 

(3) Sufficient area enclosed to permit a 
thorough inspection at all times 
regardless of weather conditions- 
Trailers may be inspected outside of the 
enclosed area as long as attached to 
prime mover. 

(4) If a light chart is used to check lights, 
parallel lines at least 3 feet long painted 
on floor surface 25 feet from the chart. 

Statutory Authority G.S. 20-2; 20-39. 

,0519 STATIONS 

(a) Licensed stations shall be kept clean to 
prevent accidents and all vehicles shall remain in 
the inspection area during the entire inspection. 

(b) Stations with only a 25 foot lineal inspection 
lane shall not inspect trucks or other vehicles 
exceeding that length. 

(c) Stations with mechanical aimers shall not 
inspect vehicles with headlamps that were not 
manufactured to be aimed with this device. These 
headlamps were manufactured to be aimed with 
photoelectric eyes, wall charts, computerized 
headlight test equipment, or on-board headlight 
aiming devices. 

(d) Stations not equipped with an exhaust 
emission analyzer shall not inspect vehicles which 
are 1975 or newer gasoline powered motor 
vehicles registered or based in counties designated 
as non-attainment for air quality standards by 
either the North Carolina Department of 



Environment. Health. & Natural Resources (N.C. 
DEHNR) or U.S. Environmental Protection 



Agency (U.S. EPA). However, they are permitted 
to perform the original safety equipment 



inspections on new vehicles, vehicles 1974 model 
year or older. diesel powered vehicles, 
motorcycles and trailers. 

(e) Each station shall have equipment and tools 
for the carrying out of inspections, which include 
but are not limited to the following: 

(1) 1 jack or lift with minimum capacity of 



£2) 

£31 
£41 
£51 
£61 

£21 



£81 
£21 



2 tons. 

I headlight tester or aiming kit adapters 

to fit all headlights. 

i workbench. 

1 creeper. 

1 hand paper punch (round. 1/4" cut). 

1 tire tread depth gauge (calibrated in 

32nds of an inch). 

1 Emission Control System Application 



Manual (current edition issued by N.C. 

DEHNR). 

1 Exhaust Emission Analyzer. 

1 Active telephone line with jack. 



Statutory Authority G.S. 20-2; 20-39. 

.0520 INSPECTION STATION PERSONNEL 

Each licensed inspection station shall have a 
certified inspection mechanic employed at all 
times. The license holder shall be responsible for 



the acts of the inspection mechanic. All personnel 



of each inspection station and each self-inspector 



who conducts inspections as contemplated by these 



Rules must meet the following requirements: 
(1) Be of good character and have a good 
reputation for honesty: 
Have knowledge of the safety equipment 



£21 



£31 



or safety equipment exhaust emission 



requirements as cited in G.S. 20-124 
through 20-129; 
Be able to conduct a safety equipment or 
safety equipment exhaust emission 



inspection as required by the inspection 

laws: 

(4) Have a general knowledge of motor 



£51 
£61 



£H 



vehicles to be able to recognize any 
unsafe mechanical condition: 
Have a valid drivers license: 
Satisfactorily complete training and 
examinations as prescribed in 19A NCAC 



03D .0522(c): 
Be certified by the Division upon the 
condition that he or she meets the 
requirements as set out in this Section. 



545 



9:8 



NORTH CAROLINA REGISTER 



July 15, 1994 



PROPOSED RULES 



Statutory Authority G.S. 20-2; 20-39. 

0521 MECHANIC REQUIREMENTS 

(a) An a pplicant and licensee shall certify that 
ach inspector meets the requirements as set out in 



his Section. 

(b) At reasonable times, a certified inspection 
nechanic may be required by authorized law 
tnforcement officers of the Division to 



jemonstrate proficiency and knowledge pertaining 



o the Safety Equipment or Safety Equipment 
xhaust Emission inspection requirements which 



nclude completion of an actual or simulated Safety 



iquipment or Safety Equipment Exhaust Emission 



nspection in the presence of any such authorized 



officer- 



license and inspection mechanic's certifications 
shall be for the place of business set forth in the 
application. Licenses and inspection mechanic 
certifications shall not be assignable and shall be 
valid only for the persons in whose name they are 
issued and for transaction of business only at the 
place designated therein. 

(e) No Safety Inspection Station shall inspect 
any gasoline powered vehicle of a 1975 model 
year or newer excluding the initial year model if 
the vehicle is registered or based in a county 
participating in the exhaust emission inspection 
program unless the station has an exhaust emission 
analyzer and has been a pproved as specified in 
19A NCAC 03D .0519(e)(8) to conduct exhaust 
emissions inspections by the Division of Motor 
Vehicles. Owners of vehicles registered in a 
county participating in the exhaust emission 
program but based and operated outside the county 
may request in writing on forms furnished by the 
division an exemption from the exhaust emission 
inspection. When an a pproved exhaust emission 
request for exemption is presented. Safety 
Inspections stations may conduct the safety 
equipment inspection in the regular manner. 
Vehicles exempted from exhaust emission 
inspection because they are based outside of the 
county participating in the exhaust emission 
program must have a copy of the a pproved 
exemption form in the vehicle at all times. 

Statutory Authority G.S. 20-2; 20-39; 20-183.3. 

.0523 DENIAL, SUSPENSION OR 
REVOCATION OF LICENSES 

(a) Denial of License: The Commissioner shall 
deny the application of any a pplicant for a Safety 
Equipment or Safety Equipment Exhaust Emissions 
Inspection Station License who fails to meet the 
qualifications set out in G.S. 20. Part 2^ Article 
dditional eight-hour Emissions Inspection course 3A or the rules in this Section. Applicants 

disapproved for licensing shall be notified by mail 
as soon as is practicable. An a pplication received 
with fraudulent or fictitious information shall be 



'tatutory Authority G.S. 20-2; 20-39. 

0522 LICENSING REQUIREMENTS 

(a) The Commissioner may, upon a pplication, 
lesignate the State of North Carolina, any political 
ubdivision thereof, or any person, firm, or 



orpo ration as a self-inspector provided a pplicant 



neets the requirements of the rules in this Section 



md owns or operates and inspects a minimum of 
motor vehicles. These self inspector applicants 
oust meet all equipment requirements for the 
i cense for which a pplied. 



(b) No a pplication for a ppointment as a safety 
quipment or safety equipment exhaust emissions 
nspection station or self-inspector shall be 



pproved unless the requirements are met as set 
mt in this Section. 

(c) To become a North Carolina Safety 
nspector. an individual must attend and pass an 



ight-hour Safety Inspection Course offered by a 
forth Carolina Community College. An 



ndividual must pass a written examination with a 
core of no less than 80% correct answers. An 



s required if the individual desires to be certified 
s an Emissions Inspector. The inspection 
lechanic license must be renewed every four 



ears prior to the month of license expiration. 
Tiis certification process requires that a person 
ave the ability to read and write. No oral exams 
hall be given as allowed in CFR 51 Part 40. 
(d) Based upon the a pplication and the results of 
investigations made, each applicant shall be 
pproved or disapproved for licensing. Each 



pplicant approved shall be notified by mail and 



urnished without charge the a ppropriate station 



icense and inspection mechanic certification for 



ach person certified to conduct inspections. Such 



denied. Persons who are denied a license shall be 

allowed a hearing in accordance with G.S. 20- 

183.8E. 

(b) Suspension or Revocation of License: 

(1) The license of any inspection station 

violating the Rules in this Section or 

G.S. 20. Part 2u Article 3A shall be 

subject to suspension or revocation. 

The license of any inspection station 

shall be subject to suspension or 

revocation at any time when any of its 



':* 



NORTH CAROLINA REGISTER 



July 15, 1994 



546 



PROPOSED RULES 



personnel conducting inspections do not 
meet the rules in this Section. Any 
person, firm, or corporation whose 
license is suspended or revoked shall 
immediately surrender all unused 
inspection stickers to the Division of 
Motor Vehicles and no such licensee 
shall inspect vehicles while its license is 
suspended or revoked. Every licensee 
whose license is suspended or revoked 
or who is assessed a civil penalty or 
who receives a warning letter from the 
Division shall be allowed a hearing in 
accordance with G.S. 20-183.8E. 

(2) Prior to the reinstatement of license of 
any Safety Equipment or Safety 
Equipment Exhaust Emissions 
Inspection Station License which has, 
by order of the Commissioner. been 
revoked or suspended, the a pplicant 
shall demonstrate to the satisfaction of 
the Commissioner or his duly 
authorized agent that its employees 
have adequate knowledge of the safety 
equipment or safety equipment exhaust 
emission inspection procedures and 
requirements described in these rules in 
this Section and that the location is 
mechanically equipp ed to carry out 
proper inspections. Prior to the 
reinstatement of any Inspection 
Mechanic License which has, by order 
of the Commissioner, been revoked or 
suspended, the applicant shall attend a 
training session in Safety Equipment or 
Safety Equipment Exhaust Emission 
Inspection. Proof of course attendance 
and passing a written test must be 
presented to a Division of Motor 
Vehicles representative. Any inspection 
mechanic who has been inactive for a 
period of one year or more must be 
recertified by completing the required 
training. 

(3) Motorists assessed civil penalties or 
fines shall be allowed a hearing in 
accordance with G.S. 20-183.8E. 
Motorists requesting a hearing shall 
mail a written hearing request to the 
Commissioner of Motor Vehicles. 1100 
New Bern Avenue. Raleigh. NC 27697. 

Statutory Authority G.S. 20-2; 20-39. 

.0524 OPERATION OF SAFETY OR 



EXHAUST EMISSIONS 
INSPECTION STATIONS 

(a) Posting information: 
(1) Each station shall display in a conspicu 
ous place the following: 
(A) Official Safety Equipment or Safety 
Equipment Exhaust Emissions Inspec- 



m 



tion Procedure Poster: 
Safety Equipment or Safety Equip- 
ment Exhaust Emissions Inspection 
Station License: 
(O All inspection mechanic certifications 



im 



issued by. North Carolina Division of 
Motor Vehicles; 

On the outside of its building or 
immediately adjacent thereto a sign in 
block letters at least four inches in 
height bearing the words: OFFICIAL 
INSPECTION STATION. 
(2) Station license and inspection mechanic 

certification(s) shall be posted in a 

frame under glass. 
(A) If any certified inspection mechanic 



leaves the employment of a safety 
equipment station, the inspection 



mechanic's license shall be forwarded 



to the Division by the station alons 
with the next regular monthly report. 



ffi) 



If any. certified inspection mechanic 
leaves the employment of a safety 



equipment exhaust emission station. 



the license shall be retained and given 



to the DMV Inspector at the next 
quarterly audit. 
(b) Periodic Requirements for Certified Inspec 
tion Mechanic. At reasonable times, certified 



inspection mechanics may be periodically required 
by. authorized law enforcement officers of the 
Division to demonstrate knowledge pertaining to 
the Safety Equipment or Safety Equipment Exhaust 



Emissions inspections in the presence of any such 
authorized officer. 
(c) Location. Inspections shall be conducted 



only at the location shown on the inspection 



station's license and only in the designated inspec 
tion area. Trailers may be inspected outside of 
inspection area as long as they are attached to the 
engine unit. 

(d) Vehicle presented to be inspected. Each 
station shall inspect any vehicle presented for 
inspection according to the year model, and typ e 
of engine except as provided in this Section or 
when exempted from the emissions inspection by. 
a waiver issued by the Commissioner of Motor 
Vehicles or his designated agent. 



547 



9:8 



NORTH CAROLINA REGISTER 



July 15, 1994 



K 









PROPOSED RULES 



{e} Repairs. Inspection stations shall not in any owner or operator of the vehicle. Permission must 

manner attempt to require owners or operators of be obtained before making any repairs or adiust- 



disapproved vehicles to have the vehicles repaired ments. Requiring unnecessary repairs is prohibit- 



at the inspection station. The repairs necessary for ed. 

jroval may be made at any place chosen by the (f) Hours of operation. Each licensed public 

station must be open for at least eight normal 
business hours, five days per week. Official State 
holidays are excepted. A licensed inspection 
mechanic shall be on duty to conduct inspections 
during the hours specified. 

Statutory Authority G.S. 20-2; 20-39. 

.0525 INSPECTION STICKERS 

(a) Acquisition: 

(1) Licensed safety equipment or safety equipment exhaust emission inspection stations and self- 
inspectors shall procure stickers from the Division of Motor Vehicles and from no other source. 

(2) Orders for stickers shall be placed with a local agent of the Enforcement Section. Requests for 
stickers shall be accompanied by proper remittance. For safety equipment inspection stickers the 
amount of one dollar ($1 .00) per sticker shall be required. For safety equipment exhaust emission 
stickers, two dollars and forty cents ($2.40) per sticker shall be required. Orders for windshield 
stickers shall be placed in units of 50. Orders for motorcycles/trailers and non-windshield safety 
equipment exhaust emission inspection stickers shall be placed in units of ten. Safety Equipment 
or Safety Equipment Exhaust Emission Windshield Inspection Stickers shall be issued in books of 
50, 

(3) Orders placed in person at the local office of the Enforcement Section shall be accompanied by 
written authorization from the station to which the stickers are to be issued, upon forms furnished 
by the Division, if the order is placed by other than the person in whose name the station is 
licensed. 

(4) All licensed stations shall keep inspection stickers and numeral inserts on hand at all times. 

(5) Licensed inspection stations and self-inspectors shall, upon request, be furnished forms required 
to be used by the rules in this Section. DMV Enforcement shall furnish forms to licensed 
inspection stations and self-inspectors. 

(b) A pplication: 

(1) The inspection sticker shali be affixed only to vehicles inspected and approved in accordance with 
these Rules and G.S. 20. Article 3A. Part 2, Stickers must be affixed to a pproved vehicles within 
the inspection area of the inspection station by the person conducting the inspection. The number 
of the sticker shall be recorded on the receipt and statement. No person shall furnish, give, lend. 
or sell to any owner or operator of a motor vehicle or to any other person, or place ]n or on any 
vehicle an inspection sticker unless such vehicle has been inspected and a pproved in accordance 
with these Rules and G.S. 20. Article 3A. Part 2. 

{2} When any motor vehicle to be inspected under the Safety Equipment Act bears a prior inspection 
sticker, such prior inspection sticker may not be removed from the vehicle until such vehicle has 
passed inspection, is a pproved, and is ready to have the new sticker affixed. If the vehicle being 
inspected is rejected, the old sticker is to remain affixed until the defects causing rejection have 
been corrected and the vehicle has been reinspected and a pproved. Every licensed inspection 
mechanic upon a pproving any motor vehicle shall remove the prior inspection sticker before 
affixing the new inspection sticker. 

£3) An inspection sticker shall be placed upon the a pproved vehicle on the inside of the windshield at 
the bottom of the left side so that the left edge of the sticker is no more than one inch from the left 
edge of the windshield. For vehicles without windshields the motorcycle/trailer or non-windshield 
safety equipment or safety equipment exhaust emission sticker shall be used. The sticker shall be 
placed on the left side of the vehicle as near as possible to the front. Prior to affixing the 
windshield type sticker the inspection mechanic shall attach to the sticker the a ppropriate numeral 
inserts indicating the month and year of expiration. The inspection mechanic shall enter on the 



'•■* NORTH CAROLINA REGISTER July 15, 1994 548 



PROPOSED RULES 



sticker in the appropriate spaces the date of inspection, the odometer mileage as taken from the 
vehicle at the time inspection is performed, the inspection mechanic's name, and the inspection 
station's license number. This information shall be entered on the windshield type inspection 
sticker with a ball point pen or a laundry marking pen. Glass/plastic windshields require a 
platform to prevent damage to the windshield. The inspection sticker shall be affixed to the 
platform; when the sticker is removed from the windshield it shall no longer be valid. Prior to 
affixing the motorcycle/trailer or non-windshield safety/emission sticker the inspection mechanic 



14} 



15} 



must punch the inspection sticker with a 1/4 inch punch indicating the month inspection performed 

and year of expiration. 

All safety equipment or safety equipment exhaust emission inspection stations shall be issued two 

types of stickers. The stickers shall be of different color and shall be affixed to the proper vehicle 

according to the type of inspection required. 

The following tables indicate month and year of inspection: 



Month Number Inserts: 

\ vehicle inspected in January 

2 vehicle inspected in February 

3 vehicle inspected in March 

4 vehicle inspected in April 

5 vehicle inspected in May 

6 vehicle inspected in June 

7 vehicle inspected in July 

8 vehicle inspected in August 

9 vehicle inspected in September 

10 vehicle inspected in October 

11 vehicle inspected in November 

12 vehicle inspected in December 



Year Number Inserts 



95 vehicle inspected 

96 vehicle inspected 

97 vehicle inspected 

98 vehicle inspected 

99 vehicle inspected 

00 vehicle inspected 

01 vehicle inspected 

02 vehicle inspected 

03 vehicle inspected 

04 vehicle inspected 

05 vehicle inspected 

06 vehicle inspected in 2005 



1994 

1995 

19% 

1997 

n 1998 

n 1999 

n 2000 

n2001 

n 2002 

n 2003 

n2004 



(c) Control: 
ill 



Licensed inspection stations and self-inspectors are strictly accountable for inspection stickers in 
their possession. Any licensed inspection station losing or not accounting for any inspection sticker 



shall be subject to revocation or suspension of inspection station license as provided by these Rules. 



m 



Stickers shall be locked in a safe place to guard against loss or theft. 

Upon discovery of a loss or theft of any inspection stickers, station owners and self-inspectors must 

as soon as practicable report such loss or theft to the Enforcement Section. Motor Vehicles 



Building, 1100 New Bern Avenue. Raleigh. North Carolina. 27697. Oral reports shall be made 



upon discovery of loss or theft by. the quickest means available to the local Enforcement Section 
Inspector. 

Inspection stations and self-inspectors shall not furnish, give, loan or sell inspection stickers to any 
other licensed inspection station or self-inspector. 

Inspection stickers shall not be transferred or reissued. They shall only be affixed to the vehicle 
as designated on the receipt and statement, and only when a complete inspection of the vehicle 
confirms it meets requirements for a pproval. 
(5) Each inspection station and self-inspector shall protect stickers from larceny or damage. No refund 



13} 



14} 



shall be allowed for stolen, soiled, lost, or torn stickers and the count of the Division for returned 



stickers shall be accepted as final. All unused stickers must be accounted for. A refund shall be 
made for expired motorcycle/trailer stickers. A request for refund along with unused stickers must 
be mailed to the Enforcement Section. Division of Motor Vehicles. 1100 New Bern Avenue, 



Raleigh. North Carolina. 27697. between January 1st and January 31st of the following year- 
Refunds shall not be permitted for expired stickers postmarked after January 31st. Unused stickers 



16} 



for which a refund is not requested must be retained in a safe place until audited and destroyed by 
an agent of the Enforcement Section. 

All inspection supplies, unused stickers, copies of receipts and statements pertaining to the issuance 
of stickers, all bulletins and all forms issued by the Division of Motor Vehicles pursuant to the 
carrying out of the Motor Vehicle Inspection Program are the property of the Division of Motor 
Vehicles and shall be treated as such by any inspection station. Upon suspension or revocation of 
any safety equipment or safety equipment exhaust emission inspection station license or whenever 



549 



9:8 



NORTH CAROLINA REGISTER 



July 15, 1994 



PROPOSED RULES 



any licensee voluntarily surrenders such license or ceases to do business, all items held by such 
licensee in carrying out the inspection shall be surrendered to the Division of Motor Vehicles. 
Such items shall be inventoried by the designated agent of the Division of Motor Vehicles and shall 
be receipted upon surrender. Refunds for unused stickers shall be made by check from the 
Division of Motor Vehicles in Raleigh, 
(d) Requirement of records: 

(1) Monthly report forms. Each licensed safety equipment inspection station and each licensed safety 
equipment self-inspector shall maintain at the station a monthly inspection report sheet listing the 
beginning and ending numbers for each series of stickers issued for vehicles inspected upon forms 
furnished by the Division. A total of all defects and repairs and charges listed on the receipt and 
statements shall be recorded in the a ppropriate column of the monthly inspection report. This 
report shall be completed in duplicate and the original forwarded to the Enforcement Section, North 
Carolina Division of Motor Vehicles, monthly on or before the 10th of the month following the 
month for which it was completed. The second copy shall be retained by the station for a period 
of at least 18 months. 

(2) Receipt and statement. Licensed Safety Equipment or Safety Equipment Exhaust Emission 
inspection stations shall furnish the operator of each vehicle inspected the original co py of the 
"Receipt and Statement" indicating that the vehicle has been inspected and indicating thereon the 
items approved or disapproved. The second copy shall be retained by the inspection station for at 
least 18 months following the inspection. 

(3) Records available. Each safety equipment or safety equipment exhaust emission inspection station 
shall maintain records required and such records shall be made available for inspection by any law 
enforcement officer, upon demand, during normal business hours. 



Statutory Authority G.S. 20-2; 20-39. 

0526 PRE-INSPECTION REQUIREMENTS 

Prior to performing an inspection, the inspection 
nechanic shall: 

(1) Have all occupants leave the vehicle. 

(2) Require the operator to produce the 
current registration card to the vehicle. 

(3) Print or write legibly, use a ball point 
pen, and list the license plate number, 
serial number, mileage, number of cylin- 
ders, make, year and other required 
information for the vehicle on the Receipt 
and Statement (Form No. SI- 15) if the 
inspection is performed by the safety 
equipment inspection mechanic. If the 
vehicle does not have a license plate, 
"none" shall be indicated. If inspected 
for a dealership, the dealer sticker num- 
ber shall be indicated. 

(4) Enter all information if the inspection is 
performed by the safety equipment ex- 
haust emission inspection mechanic as 
requested by the analyzer. 

Statutory Authority G.S. 20-2; 20-39. 

0527 SAFETY EQUIPMENT GRADING 
ITEMS 

The authorized safety equipment inspection 
nechanic shall approve or disapprove each inspect- 



ed item. The following requirements shall apply: 

(1) If the item inspected is a pproved, a check 
shall be placed in the a ppropriate block 
as indicated on the SI- 15 form. 

(2) If the item inspected is not a pproved, an 
"X" shall be placed in the a ppropriate 
block as indicated on the SI- 15 form. 

(3) If the disapproved item is corrected 
during inspection, the a ppropriate block 
in "corrected during inspection" shall be 
checked as indicated on the SI- 15 form. 

Statutory Authority G.S. 20-2; 20-39. 

.0528 EXHAUST EMISSION CONTROLS 
TAMPERING CHECK 

The authorized safety equipment exhaust emis- 
sion inspection mechanic must a pprove or disap- 
prove each inspected item. The following require- 
ments as listed on the SI-15. which is the receipt 
and statement form, shall a pply: 

(1) Not applicable = This block shall be 
checked if the vehicle inspected was not 
originally equipp ed with the emission 
control devices as listed. 

(2) Connected - This block shall be checked 
if the vehicle is equipp ed with the item 
and it is connected and in an operable 
condition. 



K-8 



NORTH CAROLINA REGISTER 



July 15, 1994 



550 



PROPOSED RULES 



(3) Disconnected - This block shall be 
checked if the required emission equip- 
ment has been disconnected, removed or 
made inoperable. 

(4) Corrected z This block shall be checked 
if the emission equipment which was 
disconnected or inoperable is repaired or 
replaced. 

Statutory Authority G.S. 20-2; 20-39. 

.0529 SAFETY EQUIPMENT EXHAUST 
EMISSION INSPECTIONS 

Safety equipment exhaust emission inspection 
mechanic shall enter the following information into 
the analyzer: 

(1) For those items which are inspected and 
a pproved, the letter "P" for passed shall 
be entered. 

(2) For those items which are inspected and 
disapproved, the letter "F" for failed 
shall be entered. 

(3) For those items which were disapproved 
and corrected, the letter "C" for correct- 
ed shall be entered. 

(4) For those items which do not app ly to the 
vehicle inspected, the letter "N" for not 
applicable shall be entered. 

Statutory Authority G.S. 20-2; 20-39. 

.0530 CERTIFICATION 

When the vehicle has been a pproved, the Inspec- 
tion mechanic shall: 

(1) Prepare the a ppropriate sticker (safety 
equipment or safety equipment/ exhaust 
emission) for affixing to the vehicle. 

(2) Remove the old inspection sticker from 
the windshield. 

(3) Follow the instructions on the "Inspection 
Sticker." 

(4) Place the "Inspection Sticker" on the 
inside of windshield at the bottom of the 
left side so that the edge of the sticker is 
no more than one inch from the left side 
of the windshield. Platforms are required 
for glass-plastic windshields. 

(5) For vehicles without windshields, issue 
motorcycle/trailer stickers or non-wind- 
shield safety/emission stickers. The 
sticker shall be placed on the left side of 
vehicle as near the front as possible. 

(6) List the total inspection repair charges 
made, if any, on the "Receipt and State- 
ment" form along with the serial number 



Hi 
IS) 



of the inspection sticker which was at; 
tached to the inspected vehicle. A Safety 
Equipment Exhaust Emission inspection 
mechanic must enter all required infor- 
mation into the analyzer as defined in 
19A NCAC 03D .0519(e)(8). 
Collect fees as described in G.S. 20- 
183.7. 

Sign and give the original of the "Receipt 
and Statement" form to the operator or 
owner. 



Statutory Authority G.S. 20-2; 20-39. 

.0531 DISAPPROVAL 

If a vehicle inspected is disapproved, the inspec- 
tion mechanic at the end of the total inspection 
shall advise the owner or operator of the defect or 
defects found during the inspection. Repairs may 
only be made at the request of the owner/operator. 
Upon completion of authorized repairs, the inspec- 
tion mechanic shall follow the certification pro- 
cess. If the owner or operator requests the repairs 



to be made at some other location, then the inspec- 



tion mechanic conducting the inspection shall: 

(1) Complete the "Receipt and Statement" 
showing the vehicle was "disapproved" 
and signed by. the inspection mechanic. 

(2) Collect fees as prescribed in G.S. 20- 
183.7. 

(3) After giving the owner or operator the 
original copy of the "Receipt and State- 
ment" explain to the owner/operator he 
has 30 days to bring the vehicle back to 
the inspection station for reinspection at 
no charg e when the vehicle was disap- 
proved for either safety or emissions 
defects. 

Statutory Authority G.S. 20-2; 20-39. 

.0532 REINSPECTION 

Payment of the inspection fee at toe time of the 
original inspection by. the owner or operator of a 
"disapproved" vehicle entitles the vehicle to 
reinspection. free of charge, by the initial inspec- 
tion station. The following requirements app ly: 
(1) If the reinspection is made on the same 
date of the initial inspection, only those 
items found to be defective on the initial 
inspection shall be reinspected. If the 
reinspection is made at any time follow 



{2) If the 



ing the date of the initial inspection, all 

items shall be reinspected. 

If the vehicle is a pproved following 



551 



9:8 



NORTH CAROLINA REGISTER 



July 15, 1994 



PROPOSED RULES 



reinspection. the inspection mechanic 
shall check the a ppropriate block in the 
"Reins pected and A pproved" column on 
the SI- 15 (Receipt and Statement form), 
and indicate the date of reinspection. 
The inspection mechanic shall issue the 
correct "Inspection Sticker" and collect 
fees as prescribed in G.S. 20-183.7. 

(3) When a receipt is presented to the issuing 
inspection station, at any time within 90 
days for safety equipment reinspection 
and 30 days for emission reinspection. 
the inspection station shall reinspect the 
motor vehicle free of any additional 
charge until approved. An additional fee 
of one dollar ($1.00) or two dollars and 
forty cents ($2.40) shall be collected for 
the proper sticker according to the type 
of inspection required. 

4} The inspection deadline shall not be 
extended. 

atutory Authority G.S. 20-2; 20-39. 

533 BRAKES 

^o vehicle brakes shall be a pproved for an 
spection sticker unless the items indicated below 



e inspected and found to meet the minimum 
quirements established in G.S. 20-124 and this 



lie, 
11 



OH 



fcl 



id) 



Footbrakes shall not be a pproved if 
When applying brakes to moving vehi- 
cle, braking force is not distributed 
evenly to all wheels originally equipp ed 
with brakes by the manufacturer. (The 
inspection mechanic must drive vehicle 
to make this test. The inspector may 
check the brakes while driving vehicle 
forward into the inspection area.) 
There is audible indication (metal on 
metal) that the brake lining is worn to 
the extent that it is no longer service- 
able. (The wheel must be pulled and 
the brake lining examined when this 
occurs.) 

Pedal reserve is Jess than 1/3 of the 
total possible travel when the brakes are 
fully a pplied, or does not meet the 
manufacturer's specification for power 
brakes or air brakes. 
The reservoir of the master cylinder is 
not full. (Only brake fluid meeting 
SAE specifications for heavy duty 
hydraulic brake fluid shall be used 
when adding or changing brake fluid.) 



(e) There is a visible leakage or audible 
seepage in hydraulic, vacuum or air 
lines and cylinders, or visible cracked, 
chafed, worn, or weakened hoses. 

(f) The vehicle has any part of the brake 
system removed or disconnected. 

(g) The brake pedal moves slowly toward 
the toeboard (indicating fluid leakage) 
while pedal pressure is maintained for 
one minute. 

(h) Failure of brake indicator lamp of the 
hydraulic brake light in the bulb check 
position in 1969 or newer models. 

(2) Inspection mechanics are not expected to 
remove wheels in order to inspect the 
brakes. (Except as provided in Sub-item 
(l)(b) of this Rule.) Inspection mechanic 
must raise vehicle to get beneath to check 
underside. 

(3) Handbrakes (auxiliary, parking or hold- 
ing) shall not be a pproved if: 

(a) There is no lever reserve when the 
brake is fully a pplied. 

(b) Cables are visibly frayed or frozen, or 
there are missing or defective cotter 
pins or broken or missing retracting 
springs or worn rods or couplings. 

(c) The operating mechanism, when fully 
a pplied, fails to hold the brakes in the 
a pplied position without manual effort. 

(d) When emergency or handbrakes are 
a pplied they fail to hold vehicle. 

Statutory Authority G.S. 20-2; 20-39. 

.0534 LIGHTS 

(a) Headlights shall conform to the requirements 
of G.S. 20- 129(b) and (c). Headlights shall not be 
approved if; 

(1) There are not at least two headlamps (at 
least four on dual headlamp systems 
which require four units) on all self- 
propelled vehicles except that motorcy- 
cles and motor driven cycles need only 
one. 

(2) The lens produces other than a white or 
yellow light. 

(3) Any lens is cracked, broken, discol- 
ored, missing, or rotated away from the 
proper position, or any reflector is not 
clean and bright. 

(4) The high beam-low beam dimmer 
switch does not operate properly or the 
high beam indicator light does not burn 
on vehicles manufactured after January 



NORTH CAROLINA REGISTER 



July 15, 1994 



552 



PROPOSED RULES 



1. 1956. 

(5) Lights can be moved easily by. hand, 
due to a broken fender or loose sup- 
port, or if a good ground is not made 
by the mounting. 

(6) Foreign materials (such as shields, half 
of lens painted) are placed on the head- 
lamp lens that interferes with light 
beam of lamp. 

(7) Lights are improperly aimed. (A light 
testing machine or light testing chart 
shall be used to determine this.) 

(8) Lights project a dazzling or glaring 
light when on low beam. 

(b) Rear Lights shall conform to the require- 
ments of G.S. 20- 129(d). Taillights shall not be 
approved if: 

(1) All original equipped rear lamps or the 
equivalent are not in working order. 

(2) The lens is cracked, discolored, or of a 
color other than red. 

(3) They do not operate properly and pro- 
ject white light on the license plate. 

(4) They are not securely mounted. 

(c) Stoplights shall conform to the requirements 
of G.S. 20- 129(g). A stoplight shall not be ap- 
proved if; 

(1) The lens is cracked, discolored or of a 
color other than red or amber. Minor 
cracks on lenses shall not lead to disap- 
proval unless water is likely to short 
out the bulb. 

(2) It does not come on when pressure is 
a pplied to foot brake. 

(3) It is not securely mounted so as to 
project a light to the rear. 

(d) Clearance lights and reflectors for certain 
buses, trucks, and trailers shall conform to the 
requirements of G.S. 20-129.1. 

(e) Wreckers shall conform to the requirements 
of G.S. 20-130.2. 

(f) Parking lights shall conform to the require- 
ments of G.S. 20-134. A vehicle shall not be 
approved if parking lights are not working. 

(g) Back-Up Lamps. Any motor vehicle may be 
equipped with not more than two back-up lamps 
either separately or in combination with other 
lamps but any such back-up lamp shall not be 
lighted when the motor vehicle is in a forward 
motion nor shall the back-up lamp emit any color 
other than white. A back-up lamp is not a manda- 
tory requirement. 

Statutory Authority G.S. 20-2; 20-39. 



-0535 HORN 
The horn shall not be a pproved if: 

(1) It will not emit a sound audible for a 
distance of at least 200 feet, or it emits 
an unusually loud or harsh sound. Origi- 
nal equipment in working order will meet 
these requirements. 

(2) It has frayed, broken, or missing wiring: 
if wiring harnesses are broken or miss- 
ing: if horn button is not mounted secure- 
\y_ and in a position which is easily acces- 
sible to the driver: or if the horn is not 
securely mounted to the motor vehicle. 

(3) Operation of the horn interferes with the 
operation of any other mechanism. 

(4) Vehicles equipped with sirens shall not 
be a pproved unless they are within the 
class listed in G.S. 20- 125(b) as being 
authorized to carry a siren. 

Statutory Authority G.S. 20-2; 20-39. 

.0536 STEERING MECHANISM 

(a) The inspection mechanic must raise vehicle 
to get beneath to check steering mechanism. 

(b) The steering mechanism shall not be ap- 
proved if: 

(1) With front wheels in straight ahead 
position there is more than three inches 
of free play in steering wheels up to 18 
inches in diameter or more than four 
inches of free play in steering wheels 
over 18 inches in diameter. If vehicle 
is equipped with power steering, the 
engine must be operating. 

(2) Either front or rear springs are notice- 
ably sagging or broken. 

(3) The front wheels or front end assembly 
is bent or twisted or bolts, nuts or 
rivets are loose or missing. 

(4) Power steering system shows visible 
leaks or the power steering belt is loose 
or worn. 

Statutory Authority G. S. 20-2; 20-39. 

.0537 WINDSHIELD WTPER 

(a) If any vehicle is originally equipp ed by. its 
manufacturer with wipers on both the right and left 
sides, both wipers shall be in good working order. 

(b) Windshield wipers shall not be approved if; 

(1) The vehicle is not equipp ed with a 
windshield wiper or wipers, provided 
the vehicle has a windshield. 

(2) The wiper or wipers do not operate 



553 



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NORTH CAROLINA REGISTER 



July 15, 1994 



PROPOSED RULES 



freely. 

(3) The wiper controls are not so construct- 
ed and located that the driver may 
operate them. 

(4) The wiper or wipers are not adequate to 
clean rain, snow and other matter from 
the windshield. 

(5) Parts of blades or arms are missing or 
show evidence of damage. 

'tatutory Authority G.S. 20-2; 20-39. 

0538 DIRECTIONAL SIGNALS 

(a) G.S. 20-125.1 requires all vehicles except 
notorcvcles beginning with the 1954 models to be 



quipped with turn signals. 



121 



13} 



(b) Vehicles required to have signals shall be 
nspected and disapproved if: 

(1) Signals are not present and of a type 
a pproved by the Commissioner as 
specified in G.S. 20-125.1. Original 
directional signals on vehicles manufac- 
tured after July 1, 1953. are considered 
to be of a type a pproved by the Com- 
missioner. 

All lights do not operate properly, or if 
any lenses are broken, missing, or do 
not fit properly. 

Signal lens color is other than red or 
amber on the rear and other than white 
or amber on the front. 

(4) Lamps are not securely mounted or 
wiring and connections are not in good 
condition. 

(51 Signals are not visible from front or 
back due to faulty or damaged mount- 
ing or due to manner in which mount- 
ea\ 

(6) Switch is not so located as to be conve- 
nient for the driver to operate and so 
that its operation does not interfere with 
operation of other mechanisms. 

tatutory Authority G.S. 20-2; 20-39. 

0539 TIRES 

fa) A vehicle shall be disapproved if: 

(1) Any tire has cuts or snags that expose 
the cords. 

(2) Any tire has a visible bump, bulge, or 
knot apparently related to tread or 
sidewall separation or partial failure of 
the tire structure including bead area. 

{b} Tire depth shall be measured by a tread 
epth gauge which shall be of a type calibrated in 



thirty-seconds of an inch. Readings shall be taken 
in two adjacent tread grooves of the tire around 
the circumference of the tire. Readings for a tire 
with a tread design that does not have two adjacent 
grooves near the center shall be taken at the center 
of the tire around the circumference of the tire. 
Each tire must be completely lifted from the 
ground for an inspection to be performed. 

Statutory Authority G.S. 20-2; 20-39. 

.0540 TIRES - DEFINITIONS 

(a) Rim is a metal su pport for the tire or tire 
and tube assembly on the wheel. Tire beads are 
seated on the rim. 

(b) Bead is that p art of the tire which is shaped 
to fit the rim. The bead is made of high tensile 
steel wires wrapp ed and reinforced by the plies. 

(c) Sidewall is that portion of the tire between 
tread and bead. 

(d) Cord is made from textile, steel wire strands 
forming the plies or other structure of the tires. 

(el Ply is layers of rubber coated parallel cords 
forming the tire body. 

(f) Tread is that portion of the tire that comes in 
contact with the road. 

(g) Rib is the tread section running 
circumferentially around the tire. 

fh) Groove is the space between two tread ribs. 
A tire shall not be a pproved if there is less than 
2/32 inch tread at two or more locations around 
the circumference of the tire in two adjacent major 
tread grooves or if the tread wear indicators are in 
contact with the roadway at two or more locations 
around the circumference of the tire in two 
adjacent major tread grooves. 

Statutory Authority G.S. 20-2; 20-39. 

.0541 REAR VIEW MIRRORS 

Rear view mirrors shall not be a pproved ifi 

(1) Loosely mounted. 

(2) Forward vision of the device is obstruct- 
ed by mirror assembly. 

(3) They do not provide a clear view of the 
highway to the rear. 

(4) Cracked, broken, have sharp edges or 
can not be cleaned such that rear vision 
is not obscured. 

(5) Very difficult to adjust or they will not 
maintain a set adjustment. 

£6} Bus, truck or truck-tractor with a GVWR 
of 10.001 pounds or more is not 
equipped with a rear vision mirror on 
each side. 



':* 



NORTH CAROLINA REGISTER 



July 15, 1994 



554 



PROPOSED RULES 



(7) Vehicles manufactured, assembled, or 
first sold after January l± 1966 are not 
equipp ed with outside rear view mirrors 
on the driver's side. 

Statutory Authority G.S. 20-2; 20-39. 

.0542 EXHAUST EMISSION CONTROLS 

(a) An exhaust emission shall not be approved if 
the vehicle is a 1968 year model or newer and any 
of the visible emission control devices placed 
thereon by the manufacturer are missing, discon- 
nected, made inoperative or have been altered 
without approval of the Department of Environ- 
ment. Health, and Natural Resources. 

(b) If the unleaded gas restrictor has been 
altered or removed a new or reconditioned catalyt- 
ic converter and unleaded gas restrictor must be 
replaced before the vehicle passes inspection. 

(c) An exhaust system shall not be a pproved if: 

(1) The vehicle has no muffler. 

(2) The muffler, exhaust or tail pipes have 
leaking joints. 

(3) The exhaust or tail pipes have holes, 
leaking seams or leaking patches on 
muffler. 



£4} The tail pipe end is pinched. 

(5) The exhaust system is equipp ed with 
muffler cut-out or muffler by-pass. 

(6) Any part of toe system passes through 
the passenger compartment. 

Statutory Authority G.S. 20-2; 20-39. 

.0543 EMISSIONS CONTROL DEVICE 

It is unlawful to remove, disconnect, tamper 
with, or render inoperable any emissions control 
device equipp ed by the manufacturer of any motor 
vehicle as described in G.S. 20-183.3. These 
devices include: 

(1) Catalytic converter. 

(2) Unleaded gas restrictor. 

(3) Air pump system. 
{4} EGR valve. 

{5} PCV valve. 

(6) Thermostatic air cleaner. 

(7) Evaporative emission system. 
(81 Oxygen sensor. 

Statutory Authority G.S. 20-2; 20-39. 



.0544 INSPECTION PROCEDURE FOR EMISSIONS EQWPMENT 

(a) In addition to the required safety inspection, all gasoline-powered motor vehicles which are registered 



or based in an exhaust emission county and which are 1975 model year or newer are required to have an 
exhaust emission test. This exhaust emission test is in addition to the safety inspection required in the rules 
in this Section and shall be administered as a part of the regular inspection only. The exhaust emission 



readings resulting from the test must be at or below the standards as set forth in Paragraph (e) of this Rule 
or a waiver must be issued by the Commissioner of Motor Vehicles or his designated agent. A current year 



model vehicle is not required to be inspected under the exhaust emission testing procedures. The current year 



model vehicle shall be subject to the exhaust emissions inspection if presented for reinspection at anytime after 



the original inspection. The approved emission equipment installed on a current year model shall be deemed 



to be adequate to meet the emission requirements. No person shall install, construct, or use any device or 
cause the installation, construction, or use of any device which conceals any exhaust emissions of a motor 



vehicle unless such installation of a device results in a reduction in the total amount of air contaminants 



released into the atmosphere and has been approved by the United States Environmental Protection Agency 
and the North Carolina Department of Environment. Health, and Natural Resources. 

(b) Vehicles which are purchased in a non-exhaust emission county and which are to be based in an exhaust 
emission county, shall, within 10 days, be reinspected in compliance with the Safety Equipment Exhaust 



Emission requirements. 

(c) The following requirements shall be adhered to by the license inspection station for calibration of the 
exhaust emission analyzer(s) used for state inspections. The requirements are: 

(1) Inspections shall be performed only with an analyzer and software which has been certified by 
N.C. DEHNR. 

(2) All certified analyzers shall automatically require the inspection mechanic to perform a self- 
calibration and leak test every three days. If the analyzer does not require a gas calibration/leak 



Ql 



£A] 



test every three days, no additional inspections shall be performed and the DMV Inspector shall 
be notified. 

All analyzers must be equipp ed with two tanks of span gases in the following concentrations 
1.0% carbon monoxide, 6.0% carbon dioxide and 300 PPM Propane: 



555 



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NORTH CAROLINA REGISTER 



July 15, 1994 



PROPOSED RULES 



(B) 4.0% carbon monoxide. 12.0% carbon dioxide and 1200 PPM Propane. 

(4) All analyzer maintenance shall be performed according to the manufacturer's specifications and 
reported on a maintenance log which shall be maintained at each station. Items to be recorded 
include: 

(A) all filter replacements: 

(B) water trap service: and 

(C) any replacement or repair of the probe or sample line. 

(5) Multi Point Calibration Requirements. 

(A) In high-volume stations (those performing 5000 or more tests per year), analyzers shall undergo 
two point calibrations each operating day and shall continually compensate for changes in 
barometric pressure. Calibration shall be checked at least every four hours and the analyzer 
adjusted if the reading is more than 2% different from the span gas value. Each time the analyzer 
electronic or optical systems are repaired or replaced, a gas calibration shall be performed prior 
to returning the unit to service- 
re) In high-volume stations, monthly multi-point calibrations shall be performed. Low-volume 
stations shall perform multi-point calibrations every six months. The calibration curve shall be 
checked at 20%. 40%. 60%. and 80% of full scale and adjusted or repaired to meet specifications 
listed in 40 CFR Part 51. A ppendix D(D (b)(1) which is hereby incorporated by reference, 
including all subsequent editions. This publication is available upon request at no cost from 
DMV Enforcement. 1100 New Bern Avenue. Raleigh. NC 27697. telephone (919) 733-7872. 
The necessary additional calibration gas bottles need not be a permanent part of the analyzer, but 
the analyzer software must require the periodic multi-point calibration and the analyzer hardware 
must accept the calibration gas from an external source. 
(C) Gas calibration shall be accomplished by introducing National Bureau of Standards traceable gases 
into the analyzer either through the calibration p ort or through the probe. Span gases utilized for 
calibration shall be within two percent of the required span points. 

(6) Requirements for keeping and submitting records are as follows: 

(A) Copies of the "Receipt and Statement" shall be removed from the analyzer at the time of 
download and filed with other business records and kept in sequence for review by the DMV 
Inspector during his audit. These copies of the "Receipt and Statement" must be retained for 18 
months. 

(B) A monthly report shall be submitted electronically by the analyzer on the date and time specified 
by the Division. It is the station's responsibility to connect the analyzer to the proper telephone 
line and leave the machine properly powered for the telephone transmittal of records on the 
specified date and time each and every month. Failure to comply with this requirement may 
result in the suspension of the station license. 

(C) Station owner(s) shall maintain the printer in a condition so that all copies of the Vehicle 
Inspection Receipt/Statement are clear and legible. 

(d) The procedures for inspection shall be as follows: 

(1) The vehicle's engine must be at normal operating temperature, and all accessories must be off. 

(2) The exhaust system from the engine manifold to the rear most portion of the tailpipe shall be 
examined to determine that the exhaust system is free from cracks, holes or dents which would 
restrict, reduce, allow leakag e or any way prohibit the free flow of exhaust from the engine to the 
rear most portion of the tailpipe. The Exhaust Emissions Test requires one analyzer probe to be 
inserted 10" to 16" in the end of tailpipe. If the exhaust system is defective (leaking joints, holes, 
leaking seams, or leaking patches) this could interfere with an accurate exhaust emissions reading. 
A defective exhaust system is a failure item under the safety inspection requirements. 

(3) The inspection mechanic shall conduct the emission test with the use of an exhaust emission 
analyzer which has met N.C. DEHNR certification and has been a pproved by. the North Carolina 
Commissioner of Motor Vehicles or his designated agent. 

(4) The emission's test shall be conducted using the following procedures: (All instructions provided 
by the analyzer must be followed): 

(A) Idle Mode Emission Test: 

(i) Analyzer must be warmed-up. 

(ii) The analyzer shall prompt the inspector to test the vehicle in as-received condition with the 



9:8 NORTH CAROLINA REGISTER July 15, 1994 556 



PROPOSED RULES 



liiil 



M 



{v} 



(vi) 



Mi} 



transmission in neutral or park, All accessories shall be turned off and the engine running 
at normal operating temperature. 

The inspector shall deploy a tachometer, insert the sample probe into the tailpipe, then the 
test sequence shall begin. 

Pre-condition mode shall initiate when engine speed is between 2200 and 2800 RPM and 
continue for 30 seconds- 
Idle mode test shall start when the vehicle engine speed is between 350 and 1100 RPM. The 
mode shall last a minimum of 30 seconds and a maximum of 90 seconds. 
If the vehicle passes, the reported scores shall be the passing readings. If the vehicle fails, 
the inspector shall proceed to the second chance test. 

Second chance pre-condition mode shall initiate when engine speed is between 2200 and 2800 
RPM and continue for 180 seconds- 
Second chance idle test shall start when the vehicle engine speed is between 350 and 1100 
RPM. The mode shall last for a maximum of 90 seconds. NOTE: The engine shall be shut 
off and restarted for 1981-1986 Ford Motor Company products and 1984-1985 Honda 
Preludes, as instructed by the analyzer. 
(ix) The pass/fail analysis shall begin after an initial time delay of 10 seconds. 
(x) The pass/fail determination is made based on a comparison of the HC and CO readings 
against the idle emission standards for that particular vehicle. 
(B) The analyzer shall test and disapprove a vehicle when the Carbon Monoxide (CO) or 
Hydrocarbon (HC) reading of the inspected vehicle is higher than the standards set forth in 
Paragraph (e) of this Rule. 
(e) The following chart indicates the maximum allowed Emission Standards which became effective April 
1.1991: 

CARBON MONOXIDE 
CO STANDARD 



iviii} 



HYDROCARBON 
HC STANDARD 



VEHICLE CLASS 



Light-duty vehicles 



Heavy-duty vehicles 



MODEL YEAR 

1975-1977 
1978-1979 
1980 



AT IDLE (0%) 
4,5 

2^0 

L2 
5^0 

4J) 

(fj A challenge waiver may be issued by_ the Commissioner of Motor Vehicles or his designated agent. If 
the owner/operator of the vehicle suspects the analyzer is incorrect, he may petition the Division of Motor 



1981 & later 
1975-78 
1979 & later 



AT IDLE (PPM) 

450 

350 

250 

220 

500 

400 



Vehicles to test the vehicle in question to determine the analyzer's accuracy. If the test determines the vehicle 



to be in compliance with the Emission Standards, a challenge waiver shall be issued and the Division shall 
immediately require an examination of the station analyzer in question and take corrective action. 



Statutory Authority G.S. 20-2; 20-39. 



.0545 



SAFETY INSPECTION 
OF MOTORCYCLES 

(a) Motorcycle brakes shall fail safety inspection 



if: 



(1) When a pplying brakes to moving vehi- 
cle, there is insufficient force to stop 
the vehicle. 

(2) Brakes are worn in such a manner that 
there is an uneven braking force. 

(3) There is an audible or visual indication 
that the brake lining is worn to the 
extent it is no longer serviceable. 

(4) There is less than one-third reserve in 
either footbrake or handbrake total 



possible travel when the brakes are 
fully a pplied. 

(5) Reservoirs of braking cylinders are not 
full. 

(6) There is a visible leakage of fluid from 
any brake line or brake component. 

(7) Handbrake cables are frayed, broken, 
or frozen or linkage is defective. 

(b) Motorcycle headlamps shall fail safety 
inspection if: 

(1) Headlamp does not operate properly. 

(2) There are more than two headlamps 
connected on a single switch. 

£3} Headlamp is cracked or has holes which 



557 



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NORTH CAROLINA REGISTER 



July 15, 1994 



PROPOSED RULES 



allow entry of water. 

(4) There is standing water in the head- 
lamp. 

(5) Headlamp is out of proper aim, 
(c) Motorcycle rear lamps shall fail safety 
ispection ifi 

(1) They do not operate. 

Light is a color other than red- 
Li ght is cracked or broken and allows 
entry of water- 
There is standing water in the lens. 
Lamp is not securely mounted. 
Wiring is broken or frayed. 



m 

£21 



14} 
151 
161 



(d) A motorcycle stop lamp shall fail safety 

ispection if: 
£1} Lamp does not operate when brakes are 
a pplied. 

Light is a color other than red or am- 
ber. 

Light is cracked or broken or allows 
entry of water- 
There is standing water in the lens. 
Lamp is not securely mounted. 
Wiring is broken or frayed. 



£21 

£31 

£41 
£51 
£61 

(e) A motorcycle license plate light shall fail 
ifety inspection ifj. 

(1) Light does not operate. 

£21 Light does not illuminate the license 
plate. 

(3) Light is a color other than white. 
£fl A motorcycle horn shall fail safety inspection 

(1) The horn does not operate. 

(2) The sound emitted is not audible at 200 
feet. 

(3) The horn is not securely mounted. 

£41 The button is mounted so that it can not 
be easily operated by the driver. 
£gl Motorcycle tires shall fail safety inspection 

(1) There is less than two thirty-seconds of 
an inch of tread at two or more loca- 
tions around the circumference of the 
tire in two adjacent major tread 
grooves, or if the tread wear indicators 
are in contact with the roadway at two 
or more locations around the circumfer- 
ence of the tire. 

£21 Cords are exposed at any location on 
the tire. 

£3J Sidewall is cut, bulging, damaged or is 
severely cracked due to dry. rotting. 
£h} Motorcycle rear view mirrors shall fail 
tfety inspection i£ 

£11 The mirrors are missing, broken, or 



cracked. 
£21 The mirrors are not securely mounted. 
£3J The mirrors will not hold a setting 
while vehicle is in operation. 
£jl A motorcycle exhaust system shall fail safety 
inspection if: 

(1) The motorcycle has no muffler. 

The muffler, exhaust or tailpipe have 
holes, leaking joints, seams, or patches. 
The tailpipe end is pinched. 
The exhaust system is equipp ed with a 
muffler cut out or bypass. 
The muffler baffles have been removed 
or damaged to create a straight pipe. 
£jl A motorcycle steering mechanism shall fail 
safety inspection if: 

(1) Front shocks are sagging or broken. 

Front end assembly is bent or there are 
damaged or twisted bolts. 
Front end nuts, bolts, or rivets are 
loose or missing. 



£21 

£31 
£41 

£5J The 



£21 



£31 



Statutory Authority G.S. 20-2; 20-39; 20-183.3. 

.0546 INVESTIGATION/AUDITS/ 
SAFETY OR EXHAUST 
EMISSIONS INSPECTION 
STATIONS 

£al Gas Audit Inspection: A DMV Inspector 
shall make a check of each station's calibration gas 
four times a year. This check is accomplished by 
measuring the concentration of the certified audit 
gas on the station's analyzer after calibration with 
the station's gas. If an analyzer fails it shall be 
placed in a lockout position until brought into 
compliance by the manufacturer and certified by 
retesting. 

(b) Complaints To Be Investigated: All bona 
fide complaints received by. the Commissioner 
about any inspection station shall be investigated 
for the purpose of determining whether there has 
been a violation of the inspection laws. 

£cl Appropriate Action To Be Taken: When |t 
a ppears from any investigation that the inspection 
law, has been violated by an inspection station or 
its agents or employees, or by a Self-inspector, the 
Commissioner shall take the a ppropriate action 
which may include but is not limited to suspension 
or revocation of the station's license and inspector 
certifications. When any such license is suspended 
or revoked, the owner of the station shall return 
the license, all unused inspection stickers, required 
records and reports and forms and su pplies on 
hand to the Commissioner. 

£d) Report of Undercover Investigation: Periodic 



:8 



NORTH CAROLINA REGISTER 



July IS, 1994 



558 



PROPOSED RULES 



checks shall be made by undercover officers of the 
Division of Motor Vehicles routinely and upon 
receipt of complaints to determine compliance with 
inspection laws. If violations are detected, admin- 
istrative action shall be taken by the Division of 
Motor Vehicles against the licensed station and the 
inspection mechanic. 

(e) Revocation. Suspension or Denial: Any 
safety equipment or safety equipment exhaust 
emission inspection station whose license has been 
revoked or suspended may, prior to such revoca- 
tion or suspension order being served, request a 
hearing before the Commissioner and in such cases 
the hearing shall be held as soon as practicable. 
To ensure such an o pportunity to the licensee, an 
agent of the Commissioner shall offer in writing 
said hearing prior to serving a suspension or 
revocation order. If the licensee requests a hear- 
ing prior to the revocation or suspension order 
being served, the licensee shall be allowed to 
continue conducting inspections. The Commis- 
sioner, following such hearing, may rescind, 
amend or affirm the revocation or suspension 
order. 

(f) When an authorized agent of the Division of 
Motor Vehicles Enforcement Section detects a 
violation, he shall immediately advise the own- 
er/operator to discontinue a 1 1 
inspections/operations until he is in compliance 
and a pproved by the Division of Motor Vehicles 
Enforcement Section Inspector. 

Statutory Authority G.S. 20-2; 20-39. 

.0547 LICENSING TO REPLACE 
WINDSHIELD INSPECTION 
STICKERS 

(a) Application for authority to replace wind- 
shield inspection stickers shall be made on forms 
furnished by the Enforcement Section of the North 
Carolina Division of Motor Vehicles and filed at 
the Motor Vehicle Building. 1100 New Bern 
Avenue. Raleigh. North Carolina. 27697. The 
a pplicant shall be engaged in the business of 
replacing windshields. 

(b) If the provisions in G.S. 20-183.4 have been 
met, upon receipt of a pplication. DMV Enforce- 
ment shall issue a license indicating the name of 
the business and the license number. 

Statutory Authority G.S. 20-2; 20-39. 

.0548 DENIAL, SUSPENSION/ 
REVOCATION/LICENSE/ 
REPLACE WINDSHIELD 



INSPECTION STICKER 

(a) The Commissioner shall deny the application 



of any. a pplicant for Replacement of Inspection 



Stickers Upon Replacement of Windshield for 
Station License who fails to meet the qualifica- 
tions: 

(1) Permanent established place of business 



12) 



111 



accessible to the Division of Motor 
Vehicles for audit of records: 
Be in the business of replacing wind- 
shields: 

Not be currently under suspension or 
revocation as either a safety, 
safety/emissions. or windshield 
replacement station: 



Be of good character and have a good 
reputation for honesty. 

(b) The license of any business authorized to 
replace windshield inspection stickers shall be 
subject to suspension or revocation for failure to 
comply with the North Carolina General Statutes 
or these Rules governing the issuing of 
replacement inspection stickers and the required 
reporting procedure. 

(c) Upon suspension or revocation of a license 



such business shall surrender all unused inspection 



stickers to the Division of Motor Vehicles. 

Statutory Authority G.S. 20-2; 20-39. 

.0549 OPERATION TO REPLACE 
WINDSfflELD INSPECTION 
STICKERS 

(a) Each business authorized to replace 



windshield inspection stickers shall display in a 
conspicuous place the license issued by the 
Enforcement Section of the North Carolina 
Division of Motor Vehicles 

(b) The business may include a charge to its 
customer for a replaced windshield sticker of the 
actual amount paid to the Motor Vehicle Division 
for such sticker. 

(c) Inspection stickers 
(1) Acquisition. 

(A) Orders for inspection stickers may be 
placed with a local agent of the 
Enforcement Section. Requests for 
safety inspection stickers must be 
accompanied by remittance in the 
amounts required in G.S. 20-183.7. 



im 



Orders for stickers shall be placed in 

units of 50. 

Orders placed for inspection stickers 



shall be on forms prepared by the 
Division and shall bear the signature 



559 



9:8 



NORTH CAROLINA REGISTER 



July 15, 1994 



PROPOSED RULES 



of the owner, partner, officer of the 

corporation or an authorized 

representative. Such forms shall upon 

request be furnished by the Division. 

The stickers shall be delivered in a 

manner determined by the Division. 

(C) All businesses authorized to replace 

windshield inspection stickers shall 

keep a supply of inspection stickers 

and numeral inserts on hand at all 

times. 

(2) A pplication of Sticker: The inspection 

sticker shall be placed on the new 

windshield at the bottom of the left side 

so that the left edge of the sticker is no 

more than one inch from the left side of 

the windshield. Prior to affixing the 

inspection sticker the a ppropriate 

numeral inserts indicating the month 

and year the vehicle was previously 

inspected shall be attached. The person 

placing this sticker on the new 

windshield shall enter on such sticker in 

the a ppropriate spaces the same date of 

inspection, odometer mileage and 

inspection station's license number as 

that shown on the sticker attached to 



the windshield removed 



At the space 

By" the license 

business 



(21 



(M 



m 



marked "Inspected 

number assigned to the 

replacing the windshield and the initials 

of the person affixing the sticker shall 

be entered. This information shall be 

entered on the sticker with a ball point 

pen or a laundry marking pen. 

Glass/plastic windshields require a 

platform to prevent damage to the 

windshield. The inspection sticker shall 

be affixed to the platform. When the 

sticker is removed it shall be self 

voiding. 

Control: 

All businesses authorized to replace 

windshield inspection stickers shall be 

held strictly accountable for inspection 

stickers in their possession. Any such 

business losing or not accounting for 

any ins pection stickers shall be 

subject to revocation or suspension of 

their license to replace windshield 

inspection stickers. Stickers shall be 

locked in a safe place to guard against 

loss or theft. 

Upon discovery of a loss or theft of 
any inspection stickers the licensee 



iei 



im 



£E1 



im 



must as soon as practicable report 
such loss or theft to the Enforcement 
Section. Motor Vehicles Building. 
1100 New Bern Avenue. Raleigh. 
North Carolina. 27697. Oral reports 
shall be made upon discovery of loss 
or theft by. the quickest means 
available to the local Enforcement 
Inspector- 
Businesses licensed to replace 
windshield inspection stickers shall 
not furnish, give, loan or sell 
inspection stickers to any other 
licensed business, inspection station, 
self-inspector or any. other person. 
Inspection stickers shall not be 
transferred or reissued. They may 
only be affixed to the vehicle as 
designated on the inspection report 
sheet and only when the windshield 
has been replaced by the licensee. 
Each licensed business shall protect 
stickers from larceny or damage and 
no refund shall be allowed for stolen, 
soiled, lost or torn stickers and the 
count of the Division for returned 
stickers shall be accepted as final. An 
account must be made for all unused 
stickers. Refund shall be made for 
unused stickers upon termination of 
license of such place of business. 
All inspection su pplies, unused 
stickers, copies of receipts and 
statements pertaining to the issuance 
of stickers, all bulletins and all forms 
issued by the Division of Motor 
Vehicles pursuant to the carrying out 
of this program are the property of 
the Division of Motor Vehicles and 
must be treated as such by the 
licensee. Upon suspension or 

revocation of any license issued to a 
business to replace windshield 
inspection stickers or whenever any 
licensee voluntarily surrenders such 
license or ceases to do business, all 
such licensee in 
this program shall be 



items held by 
carrying out this 



£41 



IA1 



surrendered to the Division of Motor 
Vehicles. Such items shall be 
inventoried by the designated agent of 
the Division of Motor Vehicles and 
shall be receipted upon surrender- 
Requirements and Records: 
Monthly report forms. Each licensed 



9:8 



NORTH CAROLINA REGISTER 



July 15, 1994 



560 



PROPOSED RULES 



windshield replacement station shall 
maintain at the station a monthly 
report sheet listing the beginning and 
ending numbers for each series of 
stickers placed on windshields upon 
forms furnished by the Division. 
This report shall be completed in 
duplicate and the original forwarded 
to the Enforcement Section. North 
Carolina Division of Motor Vehicles, 
1100 New Bern Avenue. Raleigh. 
North Carolina 27697. monthly on or 
before the 10th of the month 
following the month for which it was 
completed. The second copy shall be 
retained by the station for a period of 
at least 18 months. 

(B) Licensed business which replace 
windshield inspection stickers shall 
furnish the operator of each vehicle in 
which they have replaced a windshield 
and affixed an inspection sticker an 
authorized "Receipt and Statement". 
This form shall be made in duplicate, 
upon forms furnished by. the Division 
of Motor Vehicles and a copy shall be 
retained by the licensee for a period 
of at least 18 months following the 
date the sticker is placed on the 
windshield. 

(C) Records available. Each windshield 
replacement station shall maintain 
records required and such records 
shall be made available for inspection 
by any law enforcement officer, upon 
demand, during normal business 
hours. 

Statutory Authority G.S. 20-2; 20-39. 

.0550 RECOGNITION OF SAFETY 
INSPECTIONS ISSUED BY 
CERTAIN OTHER JURISDICTIONS 

(a) This Rule a pplies to commercial vehicles 
only. 

(b) The Commissioner of Motor Vehicles may 
promulgate rules to honor safety inspection 
stickers issued in other jurisdictions until the time 
of expiration. Any commercial motor vehicle 
registered or required to be registered in North 
Carolina displaying a valid safety inspection 
sticker issued by another jurisdiction and for which 
a valid and current inspection sticker has been 
issued by such jurisdiction shall be exempt from 
the North Carolina safety inspection sticker- 



Exception - Vehicles that are registered or based in 
an exhaust emission county in this state and are 
required to be inspected under the safety 
equipment exhaust emission program. 

(c) The states whose motor vehicle safety 
inspection requirements equal or exceed the 
requirements of the North Carolina safety 
inspection program are listed below: 
District of Columbia Pennsylvania 
Maine Rhode Island 

New Hampshire Utah 

New Jersey 
New York 



Vermont 
Virginia 



West Virginia 



Statutory Authority G.S. 20-2; 20-39. 

.0551 APPROVAL AND DISAPPROVAL 
OF VEHICLES 

Vehicles shall not be disapproved based upon 



any 



item other than the 11 items enumerated in this 
Section or for any reason other than those 
specified in 19A NCAC 03D .0533 through 03D 
.0545. 

Statutory Authority G.S. 20-2; 20-39. 

.0552 WAIVERS FROM EXHAUST 

EMISSIONS TEST REQWREMENTS 

(a) The Commissioner, or Enforcement Section 
employees who are designated by the 
Commissioner, may issue a written waiver from 
the a pplicable exhaust emissions test standards for 
any vehicle, except vehicles listed in Paragraph (g) 
of this Rule, if the waiver issuance criteria have 
been met. 

(b) A written waiver shall be issued in 
accordance with this rule upon request when all of 
the following criteria have been met to the 
satisfaction of the Commissioner or the designated 
Enforcement Section employee: 

(1) The vehicle passed the safety portion of 
the inspection as shown by the vehicle 
inspection receipt completed by the 
licensed self-inspector or inspection 
station that performed the inspection. 

(2) The vehicle failed the exhaust emissions 
portion of the inspection as shown by 
the vehicle inspection receipt completed 
by the licensed self-inspector or 
inspection station that performed the 
inspection. 

(3) The vehicle is equipp ed with each 
exhaust emissions control device listed 
in Rule .0543 of this Section, if such 



561 



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July 15, 1994 



PROPOSED RULES 



device was equipp ed on the vehicle by 
the manufacturer. If the unleaded gas 
restrictor has been removed or rendered 
inoperable, the catalytic converter must 
be replaced. 

(4) Qualifying repairs have been completed 
on the vehicle within 45 days following 
the initial failed exhaust emissions 
inspection. Proof of repairs must be 
shown by. itemized and dated receipts 
from the person or business that 
provided the repair service or parts. 
Receipts for parts shall name the part 
and not just the stock number. 
Qualifying repairs means re pairs 
performed on a vehicle for the purpose 
of repairing the cause of the exhaust 
emissions inspection failure. The 
repairs must be appropriate to the cause 
of the test failure. A visual inspection 
of the vehicle shall be made by the 
designated Enforcement Section 
employee to determine if repairs were 
actually performed if, given the nature 
of the repair, this can be visually 
confirmed. 

(A) For pre- 1981 model year vehicles, 
qualifying repairs may be performed 
by any person, including the vehicle 
owner. 

(B) For 1981 and later model year 
vehicles, qualifying repairs must be 
performed by a person who is 
professionally engaged in vehicle 
repairs or who is employed by a 
business whose purpose is vehicle 
repair or who possesses a certification 
from the National Institute For 
Automotive Service Excellence for 
emission-related diagnosis and repair. 

(5) The minimum repair expenditure 
a pplicable to the vehicle has been met 
by having qualifying repairs performed 
on the vehicle. 

(A) For 1975-1980 model year vehicles, 
the minimum repair expenditure is 
seventy-five dollars ($75.00). Only 
the costs of parts are a pplied toward 
the minimum repair expenditure on 
these vehicles if the repairs are 
performed by the vehicle owner or by 
a person who is not professionally 
engaged in vehicle repairs or who is 
not employed by a business whose 
purpose is vehicle repair or who does 



not possess a certification from the 
National Institute For Automotive 
Service Excellence for emission- 
related diagnosis and repair. 
For 1981 and later model year 
vehicles. the minimum repair 
expenditure is two hundred dollars 
($200.00). including parts and labor 
costs. 

of repairs to 



(C) The cost 



The cost of repairs to correct or 
replace emissions control devices that 
have been removed, disconnected or 
rendered inoperable shall not be 
a pplied toward the minimum repair 
expenditure for any vehicle, 
regardless of model year. 

(D) The cost of diagnostic testing to 
determine whether the vehicle meets 
exhaust emissions standards shall not 
be applied toward the minimum repair 
expenditure. 

(E) Any available warranty coverage on 
the vehicle must be used to obtain the 
needed repairs before expenditures 
may be applied to the minimum repair 
expenditure. 

(6) The vehicle owner has received a 
written denial of warranty coverage 
from the vehicle manufacturer or 
authorized dealer if the vehicle is within 
the statutory age and mileage coverage 
under section 207(b) of the Federal 
Clean Air Act 142 U.S.C. 7541(b)!. 

(7) After qualifying repairs have been 
completed and within 45 days after 
failing the initial exhaust emissions 
inspection, the vehicle failed another 
exhaust emissions inspection as shown 
by the vehicle inspection receipt com- 
pleted by the licensed self-inspector or 
inspection station that performed the 
inspection. 

(c) The vehicle owner or person authorized by 
the owner must request the waiver and present the 
vehicle and current registration sticker at the 
Division Enforcement Section office that serves the 
county in which the vehicle is registered. The 
receipts and other documents required by Para- 
graph (b) of this Rule must be submitted to the 
designated Enforcement Section employee at the 
time of the request for a waiver. 

(d) The designated Enforcement Section employ- 
ee shall review the receipts and documents submit- 
ted in connection with the waiver request and shall 
make a visual inspection of the vehicle to verify 



NORTH CAROLINA REGISTER 



July 15, 1994 



562 



PROPOSED RULES 



that the criteria listed in Paragraph (b) of this Rule 
have been met. If the Enforcement Section em- 
ployee is satisfied that the waiver criteria have 
been met, the Division must issue a written waiver 
for the vehicle on a form provided by the Divi- 
sion. 

(e) The vehicle owner or person authorized by 
the owner must present the waiver to the licensed 
self-inspector or inspection station that performed 
the initial safety and exhaust emissions inspection. 
The self-inspector or inspection station shall 
reinspect the vehicle in accordance with the rules 
under this Section, except for the exhaust emis- 
sions portion of the inspection. The waiver autho- 
rization number shown on the written waiver must 
be entered into the exhaust emissions analyzer. If 
the vehicle meets all other requirements of the 
inspection, the self-inspector or inspection station 
shall affix a valid inspection sticker to the vehicle 
which shall expire at the same time it would if the 
vehicle had passed the exhaust emissions inspec- 
tion. 

(f) Each self-inspector and inspection station 
must maintain a copy of the written waivers for 
vehicles inspected and a pproved by the station for 
at least 18 months in the same manner and under 
the same conditions as other inspection records 
which are required to be maintained pursuant to 
G.S. 20-183.6A(b). 

(g) Waivers shall not be issued for any of the 
following vehicles: 

(1) Vehicles that are owned, operated or 
leased by a licensed self-inspector: 

(2) Vehicles that are owned or being held 
for retail sale by a motor vehicle deal- 
er, as defined in G.S. 20-286(11). 

Statutory Authority G. S. 20-39. 

TITLE 21 - OCCUPATIONAL 
LICENSING BOARDS 

CHAPTER 6 - BOARD OF 
BARBER EXAMINERS 

iSotice is hereby given in accordance with G.S. 
150B-21.2 that the North Carolina State Board of 
Barber Examiners intends to amend rules cited as 
21 NCAC 6F .0001, .0014; 6J .0002; 6K .0003; 
6L .0002 - .0003, .0006- .0007; and 6M .0002. 

1 he proposed effective date of this action is 
November 1 , 1994. 



1 he public hearing will be conducted at 4:00 
p. m. on August 22, 1994 at 3000 Industrial Drive, 
Bldg. G, Raleigh, NC 27609. 

ixeason for Proposed Action: 
21 NCAC 6F .0001 - To modify barber school 
physical structure and equipment requirements. 
21 NCAC 6F .0014 - To require instructor signa- 
tures on reports. 

21 NCAC 6J .0002 - Change of forfeiture of fee 
requirements. 

21 NCAC 6K .0003 - Change of forfeiture of fees 
requirements. 

21 NCAC 6L .0002 - To change the size of barber 
shops. 

21 NCAC 6L .0003 - To modify barber shop 
equipment requirements. 

21 NCAC 6L .0006 - To modify shop size and 
separation from other businesses. 
21 NCAC 6L .0007 - To allow patrons from a 
cosmetology shop to share a bathroom with pa- 
trons from a barber shop. 

21 NCAC 6M . 0002 - Set out additional duties and 
responsibilities of inspectors. 

Ksomment Procedures: Written comments must be 
submitted to the Board office by 4:00 p.m. on 
August 22, 1994. 

SUBCHAPTER 6F - BARBER SCHOOLS 

.0001 PHYSICAL STRUCTURE 

The physical structure of barber schools in North 
Carolina shall conform to the following criteria: 

(1) be a minimum of 14 feet wide; 

(2) be equipped with a minimum of ten 
barber chairs in sanitary and safe condi- 
tion sufficient for the number of students 
enrolled; 

(3) have a minimum of 896 square feet in the 
practical area for the first ten chairs; 

(4) have an additional 70 square feet in the 
practical area for each additional barber 
chair over the required ten; 

(5) have at least five feet of space between 
each chair, center to center; 

(6) have no more than 1 3/ 4 2 students en- 
rolled per barber chair; 

(7) be equipped with toilet facilities with 
hand-washing sink or basin sufficient to 
serve the number of people at the school; 

(8) have concrete and wood floors covered 
with smooth, nonporous materials; 



563 



9:8 



NORTH CAROLINA REGISTER 



July 15, 1994 



PROPOSED RULES 



(9) have instructional materials (blackboard 
space, slide programs, etc.) sufficient to 
teach barbering; 

(10) have an adequate workstand for each 
barber chair in the practical work area, 
constructed of such material as to render 
it easily cleaned; 

(11) have an adequate tool cabinet for each 
barber chair, with a door as nearly air 
tight as possible; 

(12) have at least one sink or lavatory for 
each two barber chairs; 

(13) have the school separate from any other 
place or type of business by a substantial 
wall of ceiling height; and 

(14) have classroom and desk chairs sufficient 
to serve the number of students enrolled. 

Statutory Authority G.S. 86A-15; 86A-22. 

0014 SIGNATURES ON REPORTS 

All reports, records, or other documents required 
?y applicable statutes or rules shall be submitted to 
he Board over the signature of the manager two 
nstructors . of the school, and co-signed by the 



student. 

Statutory Authority G. S. 86A-22. 

SUBCHAPTER 6J - APPRENTICE 
BARBERS 

0002 FORFEITURE OF FEE 

The examination fee paid by an apprentice 
pplicant will be forfeited if the applicant fails to 
ippear for three two examinations after the Board 
las notified him of the Board's acceptance of his 
ipplication and of the date and time of the next 
ixamination. A new fee will be required to sit for 
he examination after forfeiture. 

Statutory Authority G.S. 86A-25. 

SUBCHAPTER 6K - REGISTERED 
BARBERS 

0003 FORFEITURE OF FEE 

The examination fee paid by a registered barber 
pplicant will be forfeited if the applicant fails to 
ppear for throe two examinations after the Board 
las notified him of the Board's acceptance of his 
pplication and of the date and time of the next 
xamination. A new fee will be required to sit for 
tie examination after forfeiture. 



Statutory Authority G.S. 86A-25. 

SUBCHAPTER 6L - BARBER 
SHOPS 



.0002 MEASUREMENTS OF BARBER 
SHOP 

(a) Except as stated in (b) of this Rule, each 
barber shop shall be a minimum of 1 4 foot in 
width at the entrance, the length of the shop shall 
be a minimum of 1 4 fcct, and the shop s hall have 
five foot of s pace between caoh barber chair, from 
center to center of each chair, and s hall have s even 
feet of space from caoh chair to tho walla of the 
s hop, front and rear 196 square feet measured 
from the inside walls of the shop, not including 
common areas shared with other businesses or 
residents. In addition, each chair shall be located 
in an area where there is no less than 12 feet from 
front wall to back wall, measured through the 
center of the chair, with the back wall being the 
wall or plan to which the hackstand is affixed. 
There shall be a minimum of five feet of space 
between each barber chair, from center to center 
of each chair and there shall be no less than three 
feet from the center of any chair to any side wall. 
There shall be an unobstructed aisle in front of 
each chair of no less than four feet . 

(b) Barber shops existing prior to February 1, 
1976, must be a minimum of 12 feet in width and 
14 feet in length. 



Statutory Authority G. S. 86A-15. 

.0003 EQUIPMENT 

Each barber shall have a cabinet for barbering 
equipment. Such cabinets shall be constructed of 
material that may be easily cleaned. Each shop 
shall have smooth finished walls, ceilings and 
floors, and no exposed pipes. Each barber chair 
shall be covered with a smooth, non-porous sur- 
face, such as vinyl or leather, which is easily 
cleaned. Each shop shall have within said shop or 
building adequate toilet facilities and hand-washing 
sink or basin . 

Statutory Authority G. S. 86A-15. 

.0006 SEPARATION FROM OTHER 
BUSINESSES 

When a building or room is used for both a 
barber shop and for some other business and the 
building or room has limited air conditioning or 
heat outlets and air circulation is a problem, the 
required partition between the shop and the other 



K-8 



NORTH CAROLINA REGISTER 



July 15, 1994 



564 



PROPOSED RULES 



business may be completed from the floor up to a 
minimum of six feet with some open-like material 
from six feet to the ceiling to permit good air 
circulation. Where a barber shop is located within 
a shop licensed by the North Carolina Board of 
Cosmetic Art Examiners, the area within which the 
barber chair or chairs are located must be separat- 
ed from the cosmetology shop by a partition or 
wall of at least seven feet in height and constructed 
of a solid, smooth finished material, but which 
may contain a door. Within the barber shop area, 
each barber chair shall be located in an area where 
there is no less than 12 feet from front wall to 
back wall, measured through the center of the 
chair, with the back wall being the wall or plain to 
which the hackstand is affixed. There shall be a 
minimum of five feet of space between each barber 
chair, from center to center of each chair and there 
shall be no less than three feet from the center of 
any chair to any side wall. There shall be an 
unobstructed aisle in from of each chair of no less 
than four feet. The area where the barber chair or 
chairs are located must otherwise comply with all 
other sanitary rules and laws not inconsistent with 
this Rule. 

Statutory Authority G.S. 86A-1; 86A-15. 

.0007 LAVATORY 

Each barber in a barber shop shall be provided 
with a lavatory sink located within hi s immediate 
seven feet barbering area. Where a barber shop is 
located within a shop licensed by the North Caroli- 
na Board of Cosmetic Art Examiners, the bath- 
room may be shared with the cosmetology shop. 

Statutory Authority G S. 86A-15. 

SUBCHAPTER 6M - BARBERSHOP 
INSPECTORS 

,0002 DUTIES AND RESPONSD3n.ITIES 

The duties and responsibilities of barber shop 
inspectors shall be as follows: 

(1) to regularly inspect existing barber shops 
and barber schools and to inspect new 
barber shops and barber schools prior to 
opening; 

(2) to investigate complaints in the 
inspector's assigned inspection area; 

(3) to file weekly reports with the Board 
which contain a summary of the 
inspector's activities of the past week and 
make necessary recommendations to the 
Board; 



(4) to write receipts for all money collected, 



15} 



providing duplicate copies to the payor 
and to the Board office; 
to administer examinations as directed by 
the Board office 



Statutory Authority G.S. 86A-7; 86A-13; 86A-15; 
86A-22. 

****************** 

CHAPTER 32 - BOARD OF 
MEDICAL EXAMINERS 

Notice is hereby given in accordance with G.S. 
150B-21.2 that the North Carolina Board of 
Medical Examiners intends to amend rule cited as 
21 NCAC 32F .0003. 

I he proposed effective date of this action is 
October 1, 1994. 

lhe public hearing will be conducted at 1:00 
p.m. on August 1, 1994 at the NC Board of Medi- 
cal Examiners, 1203 Front Street, Raleigh, NC 
27609. 

Ixeason for Proposed Action: Legislative change 
of G.S. 90-15.1 allowing a registration fee of up to 
$200. 00 every odd numbered year. 

Comment Procedures: Persons interested may 
present written or oral statements relevant to the 
actions proposed at a hearing to be held as indi- 
cated above. Written statements not presented at 
the hearing should be postmarked no later than 
August 15, 1994 and mailed to the following 
address: Administrative Procedures, NCBME, PO 
Box 20007, Raleigh, NC 27619. 

SUBCHAPTER 32F - BDZNNIAL 
REGISTRATION 

.0003 FEE 

Each physician shall pay a biennial registration 
fee of eae two hundred dollars ($100.00) 
($200.00) to the Board every odd numbered year 
in accordance with G.S. 90-15.1 : except, each 
physician holding a resident's training license shall 
pay a biennial registration fee of twenty-five 
dollars ($25.00). 



565 



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July 15, 1994 



PROPOSED RULES 



Statutory Authority G.S. 90-15.1. 

****************** 

CHAPTER 48 - BOARD OF 

PHYSICAL THERAPY 

EXAMINERS 

Notice is hereby given in accordance with G.S. 
150B-21.2 that the North Carolina Board of 
Physical Therapy Examiners intends to amend rule 
cited as 21 NCAC 48F .0002. 

1 he proposed effective date of this action is 
October 1, 1994. 

Ihe public hearing will be conducted at 2:00 
p.m. on Friday, August 12, 1994 at the NC Board 
of Physical Therapy Examiners, 18 Vfest Colony 
Place, Suite 120, Durham, North Carolina 27705. 

Reason for Proposed Action: To increase fees for 
first time in three years to reflect cost increases. 

Ksomment Procedures: Interested persons may 
present their views either orally or in writing at 
the hearing. In addition, the record of hearing 
will be open for receipt of written comments from 
July 15, 1994 to 5:00 p.m. on August 15, 1994. 
Such written comments must be delivered or mailed 
to Constance W. Peake, NC Board of Physical 
Therapy Examiners, 18 Vfest Colony Place, Suite 
120, Durham, NC 27705. 

SUBCHAPTER 48F - CERTIFICATES: 

FEES: INVESTIGATIONS: RECORD 

OF LICENSEES 

0002 FEES 

(a) The following fees are charged by the Board: 
(1) application for physical therapist licen- 
sure: 

(A) by endorsement or examination taken 
in another state, one hundred dollars 
($100.00); 

(B) by examination, ninety — dollar s 
($90.00) one hundred dollars 
($100.00) plus cost of examination; 

(C) by revival of lapsed license pursuant 
to 21 NCAC 48G .0203(2)(a), ajaety 
dollaro ($90.00) one hundred dollars 
($100.00) plus cost of examination; 



(D) by revival of lapsed license pursuant 
to 21 NCAC 48G .0203(2)(b), «aety 
dollar s ($90.00) one hundred dollars 
($100.00) : 

(2) application for physical therapist 
assistant licensure: 

(A) by endorsement or examination taken 
in another state, eighty five dollar s 
f$85rQQ) ninety dollars ($90.00) : 

(B) by examination, s eventy five dollar s 
($75.00) ninety dollars ($90.00) plus 
cost of examination; 

(C) by revival of lapsed license pursuant 
to 21 NCAC 48G .0203(2)(a), 
s eventy five dollar s ($75.00) ninety 
dollars ($90.00) plus cost of 
examination; 

(D) by revival of lapsed license pursuant 
to 21 NCAC 48G .0203(2)(b), 
seventy five dollars ($75.00) ninety 
dollars ($90.00) : 

(3) renewal for all persons, thirty dollar s 
*$3&«Q) forty dollars ($40.00) ; 

(4) penalty for late renewal, twenty dollars 
($20.00) plus renewal fee; 

(5) revival of license lapsed less than five 
years, twenty-five dollars ($25.00) plus 
renewal fee; 

(6) transfer of licensure information fee, 
including either the examination scores 
or licensure verification or both, fifteen 
dollars ($15.00); 

(7) retake examination, thirty dollars 
($30.00) plus actual cost of 
examination; 

(8) certificate replacement or duplicate, 
fifteen dollars ($15.00); 

(9) directory of licensees, five dollars 
($5.00); 

(10) computer print-out or labels of any 
portion of list of physical therapists, 
sixty dollars ($60.00); 

(11) computer print-out or labels of any 
portion of list of physical therapist 
assistants, twenty dollars ($20.00); 

(12) processing fee for returned checks, 
fifteen dollars ($15.00). 

(b) The application fee is not refundable. The 
Board will consider written requests for a refund 
of other fees on an individual basis. 

Statutory Authority G.S. 25-3-512; 90-270.33. 



9:8 



NORTH CAROLINA REGISTER 



July 15, 1994 



566 



RRC OBJECTIONS 



1 he Rules Review Commission (RRC) objected to the following rules in accordance with G.S. 
143B-30.2(c). State agencies are required to respond to RRC as provided in G.S. 143B-30.2(d). 



AGRICULTURE 

Markets 

2 NCAC 43L .0113 - Gate Fees 

Agency Revised Rule 
2 NCAC 43L .0304 - Horse Facility 

Agency Revised Rule 
2 NCAC 43L .0320 - Dress of Lessees 

Agency Revised Rule 
2 NCAC 43L .0322 - Display or Sale of Weapons 

Agency Revised Rule 
2 NCAC 43L .0331 - Premiums and Awards 

Agency Revised Rule 
2 NCAC 48A .1702 - Noxious Weeds 

Agency Revised Rule 

COMMERCE 

Community Assistance 

4 NCAC 19L .0502 - Eligibility Requirements 

Agency Revised Rule 
4 NCAC 19L .0901 - Grant Agreement 

Agency Revised Rule 
4 NCAC 19L . 1302 - Eligibility Requirements 

Agency Revised Rule 

Energy 

4 NCAC 12C .0007- Institutional Conservation Program 
ENVIRONMENT, HEALTH, AND NATURAL RESOURCES 
Coastal Management 

15A NCAC 7H .1104- General Conditions 

Agency Revised Rule 

Agency Filed Rule for Codification Over RRC Objection 
ISA NCAC 7H .1204 - General Conditions 

Agency Revised Rule 

Agency Filed Rule for Codification Over RRC Objection 
ISA NCAC 7H . 1304 - General Conditions 

Agency Revised Rule 

Agency Filed Rule for Codification Over RRC Objection 
ISA NCAC 7H . 1404 - General Conditions 

Agency Revised Rule 



RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 



05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 



RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 



05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 



RRC Objection 06/16/94 



RRC Objection 
RRC Objection 

Eff. 
RRC Objection 
RRC Objection 

Eff. 
RRC Objection 
RRC Objection 

Eff. 
RRC Objection 
RRC Objection 



05/19/94 
05/19/94 
07/01/94 
05/19/94 
05/19/94 
07/01/94 
05/19/94 
05/19/94 
07/01/94 
05/19/94 
05/19/94 



567 



9:8 



NORTH CAROLINA REGISTER 



July 15, 1994 



RRC OBJECTIONS 



Agency Filed Rule for Codification Over 
ISA NCAC 7H . 1504 - General Conditions 

Agency Revised Rule 

Agency Filed Rule for Codification Over 
15A NCAC 7H . 1604 - General Conditions 

Agency Revised Rule 

Agency Filed Rule for Codification Over 
ISA NCAC 7H .1704- General Conditions 

Agency Revised Rule 

Agency Filed Rule for Codification Over 
ISA NCAC 7H . 1804 - General Conditions 

Agency Revised Rule 

Agency Filed Rule for Codification Over 
ISA NCAC 7H .1904 - General Conditions 

Agency Revised Rule 

Agency Filed Rule for Codification Over 
\5A NCAC 7H .2104 - General Conditions 

Agency Revised Rule 

Agency Filed Rule for Codification Over 

Departmental Rules 



RRC Objection 
RRC Objection 
RRC Objection 
RRC Objection 
RRC Objection 
RRC Objection 
RRC Objection 



\5A NCAC U .0303 - Filing of Required Supplemental Information 

Agency Revised Rule 
ISA NCAC 1J .0701 - Public Necessity: Health: Safety and Welfare 

Agency Revised Rule 
15 A NCAC 1L .0302 - General Provisions 

Agency Revised Rule 
15A NCAC 1L .0602 - Public Health Need 

Agency Revised Rule 

Environmental Health 

15A NCAC 18A .2610 - Storage: Handling: and Display of Food 

Agency Revised Rule 
5 A NCAC 18A .2645 - Requirements for Limited Food Service Establishments 

Agency Revised Rule 
5 A NCAC 18C .0202 - Removal of Dissolved Matter and Suspended Matter 

Agency Revised Rule 
5A NCAC 18C .0203 - Public mil Water Supplies 

Agency Revised Rule 
5A NCAC 18C .0402 - Water Supply Wells 

Agency Revised Rule 
5A NCAC 18C .0403 - Surface Water Facilities 

Agency Revised Rule 
5A NCAC 18C .0404 - Water Treatment Facilities 

Agency Revised Rule 
5A NCAC 18C .0405 - Storage of Finished Water 

Agency Revised Rule 
5A NCAC 18C .0710 - Other Water Treatment Plants 

Agency Revised Rule 
5A NCAC 18C .0711 - Alternative Filtration Treatment Technologies 

Agency Revised Rule 
5A NCAC 18C .0714 - Pilot Plant Studies 

Agency Revised Rule 



Eff. 
RRC Objection 
RRC Objection 

Eff. 
RRC Objection 
RRC Objection 

Eff 
RRC Objection 
RRC Objection 

Eff 
RRC Objection 
RRC Objection 

Eff 
RRC Objection 
RRC Objection 

Eff 

RRC Objection 

RRC Objection 

Eff 



RRC Objection 
Obj. Removed 
RRC Objection 
RRC Objection 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 



RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 



07/01/94 

05/19/94 
05/19/94 
07/01/94 
05/19/94 
05/19/94 
07/01/94 
05/19/94 
05/19/94 
07/01/94 
05/19/94 
05/19/94 
07/01/94 
05/19/94 
05/19/94 
07/01/94 
05/19/94 
05/19/94 
07/01/94 



06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 



06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 



:8 



NORTH CAROLINA REGISTER 



July 15, 1994 



568 



RRC OBJECTIONS 



15 A NCAC 18C .0802 - Capacities: Determining Peak Demand 

Agency Revised Rule 
15A NCAC 18C .0803 - Capacities: Determining Total Volume 

Agency Revised Rule 
15 A NCAC 18C .0805 - Capacities: Elevated Storage 

Agency Revised Rule 
15A NCAC 18C . 1002 - Disinfection of Wells 

Agency Revised Rule 
15A NCAC 18C . 1004 - Disinfection of Filters 

Agency Revised Rule 
15A NCAC 18C . 1102 - Authorized Persons Within Watershed Area 

Agency Revised Rule 
15A NCAC 18C . 1209 - Untreated Domestic Sewage or Industrial Wastes 

Agency Revised Rule 
15A NCAC 18C . 1406 - Control of Treatment Process 

Agency Revised Rule 
ISA NCAC 18C . 1511 - Concentration of Iron 

Agency Revised Rule 
15A NCAC 18C .1512 - Concentration of Manganese 

Agency Revised Rule 
15A NCAC 18C .1533 - Total Trihalomethanes Sampling /Analysis: < 10,000 

Agency Revised Rule 

Environmental Management 

15 A NCAC 2D .0101 - Definitions 

Agency Revised Rule 
15 A NCAC 2D . 0932 - Gasoline Truck Tanks and Vapor Collection Systems 

Agency Revised Rule 

Wildlife Resources and Water Safety 

15A NCAC 10D .0002 - General Regulations Regarding Use 

Agency Revised Rule 
15A NCAC 10H .0101 - License to Operate 

Agency Revised Rule 

HUMAN RESOURCES 

Children's Services 

10 NCAC 41F.0704 - Physical Facility 
Agency Revised Rule 

Facility Services 

10 NCAC 3E .0201 - Building Code Requirements 

Agency Revised Rule 
10 NCAC 3E .0206 - Elements and Equipment 

Agency Revised Rule 
10 NCAC 3R . 4206 - Accessibility 

Agency Revised Rule 
10 NCAC 3U .0713 - Staff/Child Ratios for Medium and Large Centers 

Agency Revised Rule 



RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 



06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 
06/16/94 



RRC Objection 06/16/94 

Obj. Removed 06/16/94 

RRC Objection 06/16/94 

Obj. Removed 06/16/94 



RRC Objection 06/16/94 

Obj. Removed 06/16/94 

RRC Objection 06/16/94 

Obj. Removed 06/16/94 



RRC Objection 


04/21/94 


Obj. Removed 


04/21/94 


RRC Objection 


06/16/94 


Obj. Removed 


06/16/94 


RRC Objection 


06/16/94 


Obj. Removed 


06/16/94 


RRC Objection 


06/16/94 


Obj. Removed 


06/16/94 


RRC Objection 


06/16/94 


Obj. Removed 


06/16/94 



569 



9:8 



NORTH CAROLINA REGISTER 



July 15, 1994 



RRC OBJECTIONS 



lental Health, Developmental Disabilities and Substance Abuse Services 

NCAC 45G . 0139 - Security Requirements Generally 
Agency Revised Rule 

lental Health: General 

NCAC 14C .1148 - Thomas S. Community Services 
Agency Revised Rule 

lental Health: MR Centers 

NCAC 16A .0402 - Explanation of Terms 
Agency Revised Rule 

NCAC 16A .0403 - Designation Procedures 
Agency Revised Rule 

DEPENDENT AGENCD2S 

tate Health Plan Purchasing Alliance Board 

4 NCAC 5 .0302 - Designation Process 
Agency Revised Rule 

VSURANCE 

Lgent Services Division 

1 NCAC 6A . 0802 - Licensee Requirements 
Rule Withdrawn by Agency 

lultiple Employer Welfare Arrangements 

1 NCAC 18 .0019 - "Qualified Actuary"; Maximum Net Retention Filing 
Agency Revised Rule 

1 NCAC 18 .0021 - Certification of Reserves Fding 
Agency Revised Rule 

QSTICE 

epartmental Rules 

2 NCAC 1 .0212 - Grievance Procedure 
Agency Repealed Rule 

rivate Protective Services 

2 NCAC 7D .1101 - Definitions 

Agency Revised Rule 
2 NCAC 7D .1104 - Training and Supervision Required in Level Three 

Agency Revised Rule 

ICENSING BOARDS AND COMMISSIONS 
hiropractic Examiners 



RRC Objection 06/16/94 
Obj. Removed 06/16/94 



RRC Objection 06/16/94 
Obj. Removed 06/16/94 



RRC Objection 06/16/94 

Obj. Removed 06/16/94 

RRC Objection 06/16/94 

Obj. Removed 06/16/94 



RRC Objection 06/16/94 
Obj. Removed 06/16/94 



05/19/94 



RRC Objection 06/16/94 

Obj. Removed 06/16/94 

RRC Objection 06/16/94 

Obj. Removed 06/16/94 



RRC Objection 05/19/94 
Obj. Removed 05/19/94 



RRC Objection 06/16/94 

Obj. Removed 06/16/94 

RRC Objection 06/16/94 

Obj. Removed 06/16/94 



'8 



NORTH CAROLINA REGISTER 



July 15, 1994 



570 



RRC OBJECTIONS 



21 NCAC 10 .0303 - Solicitation of Auto Accident Victims 
Agency Withdrew Rule 

Cosmetic Art Examiners 

21 NCAC 14H .0008 - Floor Coverings 

Agency Revised Rule 
21 NCAC 14H .0011 - Cleanliness of Operators 

Agency Revised Rule 
21 NCAC 14H .0018 - Systems of Grading Beauty Establishments 

Agency Revised Rule 

General Contractors 

21 NCAC 12 .0205 - Filing Deadline/ 'APP Seeking Qual/Emp I Another 
Agency Revised Rule 

Medical Examiners 

21 NCAC 32P .0001 - Name of Limited Liability Company 

Agency Revised Rule 
21 NCAC 320 .0001 - Definitions 

Agency Revised Rule 
21 NCAC 320 .0002 - Qualifications for License 

Agency Revised Rule 
21 NCAC 320 .0003 - Temporary License 

Agency Revised Rule 
21 NCAC 320 .0005 - Annual Registration 

Agency Revised Rule 
21 NCAC 320 .0007 - Exemption from License 

Agency Revised Rule 
21 NCAC 320 .0015 - Assumption of Professional Liability 

Agency Revised Rule 
21 NCAC 320 .0017 - Disciplinary Authority 

Agency Revised Rule 
21 NCAC 320 .0021 - Fees 

Agency Revised Rule 
21 NCAC 32Q .0101 - Definitions 

Agency Revised Rule 
21 NCAC 32Q 0208 - Confidentiality 

Rule Withdrawn by Agency 

Board of Nursing 

21 NCAC 36 .0211 - Examination 

Agency Revised Rule 
21 NCAC 36 .0218 - Licensure Without Examination (By Endorsement) 

Agency Revised Rule 

Professional Counselors 

21 NCAC 53 .0103 - Purpose of Organization 

Agency Repealed Rule 
21 NCAC 53 .0104 - Organization of the Board 

Agency Repealed Rule 



RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 



RRC Objection 
Obj. Removed 



RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 



05/19/94 



05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 



05/19/94 
05/19/94 



05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 

05/19/94 



RRC Objection 06/16/94 

Obj. Removed 06/16/94 

RRC Objection 06/16/94 

Obj. Removed 06/16/94 



RRC Objection 06/16/94 

Obj. Removed 06/16/94 

RRC Objection 06/16/94 

Obj. Removed 06/16/94 



571 



9:8 



NORTH CAROLINA REGISTER 



July 15, 1994 



RRC OBJECTIONS 



\1 NCAC53 .0201 - Supervision 

Agency Repealed Rule 
>,1 NCAC 53 .0303 - Work Experiences 

Agency Repealed Rule 
',1 NCAC 53 . 0305 - Exemption from Academic Qualification 

Rule Withdrawn by Agency 
1 NCAC 53 .0503 - Renewal Fee 

Agency Revised Rule 

leal Estate Commission 

1 NCAC 58A .1711 - Continuing Education Required of Nonresident Licensees 

Agency Revised Rule 
1 NCAC 58C .0104 - Scope: Duration and Renewal of Approval 

Agency Revised Rule 
1 NCAC 58C .0105 - Withdrawal or Denial of Approval 

Agency Revised Rule 
1 NCAC 58C .0218- Licensing Exam Confidentiality: School Perform. /Lie 

Agency Revised Rule 
1 NCAC 58C .0309 - Certification of Course Completion 

Agency Revised Rule 
1 NCAC58E .0102 - Update Course Component 

Agency Revised Rule 
1 NCAC 58E .0104 - Criteria for Approval of Update Course Sponsor 

Agency Revised Rule 
1 NCAC 58E . 0203 - Application and Criteria for Original Approval 

Agency Revised Rule 
1 NCAC 58E .0206 - Request for Videotape 

Agency Revised Rule 
1 NCAC 58E .0304 - Criteria for Elective Course Approval 

Agency Revised Rule 
1 NCAC 58E .0306 - Elective Course Instructors 

Agency Revised Rule 
1 NCAC 58E .0308 - Request for Videotape 

Agency Revised Rule 
1 NCAC 58E .0402 - Sponsor Eligibility 

Agency Revised Rule 
1 NCAC 58E . 0406 - Course Rosters, Completion Certificated and Evaluations 

Agency Revised Rule 
1 NCAC 58E .0510 - Monitoring Attendance 

Agency Revised Rule 

UBLIC EDUCATION 

lementary and Secondary Education 

6 NCAC 6C . 0307 - Certificate Renewal 

Agency Revised Rule 

Agency Revised Rule 
6 NCAC 6E .0202 - Interscholastic Athletics 

Agency Revised Rule 

EVENUE 

ales and Use Tax 



RRC Objection 06/16/94 

Obj. Removed 06/16/94 

RRC Objection 06/16/94 

Obj. Removed 06/16/94 

06/16/94 

RRC Objection 06/16/94 

Obj. Removed 06/16/94 



RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 



RRC Objection 
RRC Objection 
Obj. Removed 
RRC Objection 
Obj. Removed 



05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 
05/19/94 



04/21/94 
04/21/94 
05/19/94 
04/21/94 
05/19/94 



NORTH CAROLINA REGISTER 



July 15, 1994 



572 



RRC OBJECTIONS 



17 NCAC 7B .2608 - Plumbing: Heating: Air Cond/Bec Contractors: Purchases RRC Objection 05/19/94 

Rule Returned to Agency 06/16/94 

17 NCAC 7B .2609 - Plumbing: Heating: Air Cond/Bec Contractors: Sales RRC Objection 05/19/94 

Rule Returned to Agency 06/16/94 

17 NCAC 7B .5462 - White Goods Disposal Tax Report Form: E-500W RRC Objection 05/19/94 

Rule Returned to Agency 06/16/94 

17 NCAC 7B .5464 - Ice Certificate Form: E-599Y RRC Objection 05/19/94 

Rule Returned to Agency 06/16/94 

STATE PERSONNEL 
Office of State Personnel 

25 NCAC ID .2401 - Career Growth Recognition Award 

Rule Withdrawn by Agency 05/19/94 

25 NCAC ID . 2403 - Employees Eligible/Career Growth Recognition Award RRC Objection 05/19/94 

Agency Revised Rule Obj. Removed 05/19/94 

25 NCAC ID .2408 - Effective Date of Cost-of-Living Adjustment RRC Objection 05/19/94 

Agency Revised Rule Obj. Removed 05/19/94 

25 NCAC ID .2411 - Employees Eligible For Performance Bonus RRC Objection 05/19/94 

Agency Revised Rule Obj. Removed 05/19/94 

TRANSPORTATION 
Division of Motor Vehicles 



19A NCAC 31 .0307 - Courses of Instruction 

Agency Revised Rule 
19A NCAC 31 .0501 - Requirements 

Rule Withdrawn by Agency 



RRC Objection 
Obj. Removed 



06/16/94 
06/16/94 

06/16/94 



573 



9:8 



NORTH CAROLINA REGISTER 



July 15, 1994 



CONTESTED CASE DECISIONS 



Ihis Section contains the full text of some of the more significant Administrative Law Judge decisions 
along with an index to all recent contested cases decisions which are filed under North Carolina 's 
Administrative Procedure Act. Copies of the decisions listed in the index and not published are available 
upon request for a minimal charge by contacting the Office of Administrative Hearings, (919) 733-2698. 



AGENCY 



ADMINISTRATION 

Vorth Carolina Council for Women 

family Violence Prevention Services v. N.C. Council for Women 

ALCOHOLIC BEVERAGE CONTROL COMMISSION 

Ucoholic Beverage Control Coram, v. Entertainment Group, Inc. 
layvon Stewart v. Alcoholic Beverage Control Commission 
Ucoholic Beverage Control Comm. v. Branchland, Inc. 
Ucoholic Beverage Control Comm. v. Peggy Sutton Walters 
(ugscll Bemaid Speller d/b/a Cat's Disco v. Alcoholic Bev Ctl Comm. 
Ucoholic Beverage Control Comm. v. Branchland, Inc. 
idward Ogunjobi, Club Piccsdilli v. Alcoholic Beverage Control Comm. 
lobert Kovalaske, Nick Pikoulas, Joseph Marshburn, Evangelos Pikoulas, 
d/b/a Our Mom's BBQ v. Alcoholic Beverage Control Commission 
Christine George Williams v. Alcoholic Beverage Control Comm. 
Ucoholic Beverage Control Comm. v. Raleigh Limib, Inc. 
Ucoholic Beverage Control Comm. v. COLAP Enterprises, Inc. 
Ucoholic Beverage Control Comm. v. Ms. Lucy Jarrell Powell 
At. & Mrs. Josh Bullock Jr. v. Alcoholic Beverage Control Comm. 
erome Crawford v. Alcoholic Beverage Control Commission 

COMMERCE 

takings Institutions Division 

antes E. Byers, et al v. Savings Institutions 

CORRECTION 

Xvision of Prisons 

Jene Strader v. Department of Correction 

3UME CONTROL AND PUBLIC SAFETY 

Trims Victims Compensation Commission 

ames Hugh Baynes v. Crime Victims Compensation Commission 
lose T. Bond v. Victims Compensation Commission 
ames A. Canady v. Crime Victims Compensation Commission 
Virginia Roof v. Department of Crime Control & Public Safety 
Caren C. Tilghman v. Crime Victims Compensation Commission 
tosemary Taylor v. Crime Victims Compensation Commission 
/iolet E. Kline v. Crime Victims Compensation Commission 
ames Benton v. Crime Victims Compensation Commission 
*ercy Clark v. Crime Victims Compensation Commission 
. Richaid Spencer v. Crime Victims Compensation Commission 
larbara Henderson v. Crime Victims Compensation Commission 
ihirley Handsome v. Crime Victims Compensation Commission 
icorgeann Young v. Crime Victims Compensation Commission 
-awrence L. Tyson v. Crime Victims Compensation Commission 
-yman L. Chapman v. Crime Victims Compensation Commission 
)ouglas and Virginia Wilson v. Crime Victims Compensation Comm. 



CASE 
NUMBER 



ALJ 



DATE OF 
DECISION 



PUBLISHED DECISION 
REGISTER CITATION 



94 DOA 0242 



West 



04/13/94 



93 ABC 0719 


Gray 


03/02/94 


93 ABC 0793 


Nesnow 


04/11/94 


93 ABC 0892 


Morgan 


06/03/94 


93 ABC 0906 


Mann 


03/18/94 


93 ABC 0937 


Morrison 


03/07/94 


93 ABC 0993 


Morgan 


06/03/94 


93 ABC 1024 


West 


03/03/94 


93 ABC 1029 


Gray 


03/04/94 


93 ABC 1057 


Bee ton 


04/21/94 


93 ABC 1485 


Mann 


03/11/94 


94 ABC 0060 


Nesnow 


06/07/94 


94 ABC 0070 


Morgan 


06/06/94 


94 ABC 0124 


Morgan 


06/06/94 


94 ABC 0125 


Morgan 


06/06/94 



93 COM 1622 Chess 



03/01/94 



94 DOC 0252 Morrison 03/21/94 



93 CPS 0801 


West 


03/28/94 


9:2 NCR 114 


93CPS 1104 


West 


04/21/94 




93 CPS 1108 


Gray 


03/28/94 




93 CPS 1347 


Nesnow 


03/24/94 




93 CPS 1608 


Reilly 


05/17/94 


9:6 NCR 407 


93 CPS 1626 


Nesnow 


05/25/94 




93 CPS 1670 


Morgan 


06/13/94 




94 CPS 0034 


Chess 


06/14/94 




94 CPS 0127 


Reilly 


04/19/94 




94 CPS 0157 


Chess 


06/14/94 




94 CPS 0259 


Morrison 


04/07/94 




94 CPS 0286 


Gray 


04/28/94 




94 CPS 0292 


Reilly 


04/18/94 




94 CPS 0368 


Gray 


04/26/94 




94 CPS 0415 


Chess 


06/02/94 




94 CPS 0417 


Reilly 


06/07/94 





):8 



NORTH CAROLINA REGISTER 



July 15, 1994 



574 



CONTESTED CASE DECISIONS 



AGENCY 



Michelle L. Wilcox v. Crime Victims Compensation Commission 
Michael G. Low v. Crime Victims Compensation Commission 
Mary E. Haskins v. Crime Victims Compensation Commission 

ENVIRONMENT, HEALTH, AND NATURAL RESOURCES 

Ron D. Graham, Suzanne C. Graham v. Robert Cobb, Mecklenburg Cty 

Patricia D. Solomon v. Macon County Health Department 

Brook Hollow Estates v. Environment, Health, & Natural Resources 

Oceanfront Court, David C. Gagnon v. Environment, Health, & Nat. Ree. 

Sam's Club #8219 v. Mecklenbuig County Health Department 

Eugene Crawford & Nancy P. Crawford v. Macon County Health Dept. 

Tri-Circuite, Inc. v. Environment, Health, & Natural Resources 

Coastal Management 

Roger puller v. EHNR, Divs. of Coastal Mgmt & Environmental Mgmt 
Roger Fuller v. EHNR, Divs. of Coastal Mgmt & Environmental Mgmt 
Gary E. Montalbine v. Division of Coastal Management 
Pajey-Midgett Partnership v. Coastal Resources Commission 

Environmental Health 

Jane C. OMalley, Melvin L. Cartwright v. EHNR & District Hlth Dept 

Paaquotank-Perquimans-Camden-Chowan 
Environment, Health, & Natural Res. v. Clark Harris & Jessie Lee Harris 
Sidney S. Tate Jr. v. Dept. of Environment, Health, & Natural Resources 
Scotland Water Co., Laurin Lakes v. Environment, Health, & Nat. Res. 
Floyd Benn Williams v. Dept. of Environment, Health, & Nat. Res. 

Environmental Management 

David Springer v. Dept. of Environment, Health, & Natural Resources 
Petroleum Installation Equipment Co. , Inc. v. Env. , Health & Nat. Res. 
Jack Griffin v. Dept. of Environment, Health, and Natural Resources 

Land Resources 



CASE 




DATE OF 


NUMBER 


ALJ 


DECISION 


94 CPS 0467 


Rcilly 


06/07/94 


94 CPS 0524 


Morrison 


06/13/94 


94 CPS 1406 


Gray 


03/17/94 



PUBLISHED DECISION 
REGISTER CITATION 



93 EHR 1017 


Becton 


05/31/94 


93 EHR 1777 


West 


05/23/94 


94 EHR 0093 


West 


06/03/94 


94 EHR 0210 


Chess 


06/21/94 


94 EHR 0329 


Nesnow 


06/15/94 


94 EHR 0500 


Gray 


06/10/94 


94 EHR 0601 


Morrison 


06/30/94 



89 EHR 1378-* 


Gray 


04/07/94 


90 EHR 0017" 


Gray 


04/07/94 


93 EHR 1792 


Nesnow 


03/21/94 


94 EHR 0315 


Gray 


06/01/94 



91 EHR 0838 


Becton 


04/06/94 


93 EHR 0924 


Becton 


03/03/94 


94 EHR 0005 


Rexlly 


05/24/94 


94 EHR 0200 


Nesnow 


04/27/94 


94 EHR 0333 


Rcilly 


05/18/94 



92 EHR 1797 


Morgan 


05/19/94 


93 EHR 0531 


Chess 


03/21/94 


93 EHR 1030 


Becton 


03/21/94 



9:7 NCR 496 



Town of Kernersville (LQS 93-053) v. Environment, Health, & Nat. Res. 93 EHR 1781 
Marine Fisheries 



Chess 06/29/94 



9:8 NCR 581 



Robert I. Swinson, Virginia S. Swinson v. EHNR, Div/Marine Fisheries 93 EHR 0394 
Solid Waste Management 



Gray 04/11/94 



Roger Sessoms v. EHNR/ Asbestos Hazard Management Branch 93 EHR 095 1 

Bertie Citizens Action Coalition, Inc.; Willard J. Oliver, Reginald Early, 93 EHR 1045 
Herbert Jenkins, Jr., Li nd wood Earl Tripp, Willie Warren Tripp, Mary 
Alice Cherry, and Kathy Burden v. EHNR, Solid Waste Management 
Division, and East Carolina Environmental, Inc., Addington Environmental, 
Inc., et al. 



Gray 03/28/94 

Morrison 04/06/94 



9:3 NCR 214 



HUMAN RESOURCES 



Brenda C. Robinson v. Department of Human Resources 
Betty Rhodes v. Department of Human Resources 

Division of Child Development 

Judith Fridley v. Div. of Child Development/ Abuse/Neglect Unit 
DHR, Division of Child Development v. Joyce Gale 
Gloria C. Haith v. Department of Human Resources 
Gloria C. Haith v. Daycare Consultant 



94 DHR 0365 
94 DHR 0501 



93 DHR 0973 
93 DHR 1344 
93 DHR 1707 
93 DHR 1787 



West 
Morrison 



06/01/94 
06/02/94 



Morrison 03/08/94 

Gray 04/28/94 

Nesnow 03/22/94 

Nesnow 03/14/94 



Consolidated Cases. 



575 



9:8 



NORTH CAROLINA REGISTER 



July 15, 1994 



CONTESTED CASE DECISIONS 






CASE 




DATE OF PUBLISHED DECISION 


AGENCY 


NUMBER 


ALJ 


DECISION REGISTER CITATION 


larles E. Smith v. Department of Human Resources 


93 DHR 1797 


Nesnow 


03/21/94 


:otfs Loving Day Care & Nutsery, Mrs. Willie L. Scott v. DHR 


94 DHR 0106 


Nesnow 


06/29/94 


jlittda K. Mitchell v. Human Resources, Div. of Child Development 


94 DHR 01 19 


Reilly 


06/30/94 


ving Word Day Care, Jonathan Lankford v. Dept. of Human Resources 


94 DHR 0168 


Nesnow 


03/23/94 


mSly Services 








larles E. Hunter, Jr., M.D. & Coastal Perfusion Svcs, Inc. v. Cert of 


93 DHR 0746 


Morgan 


04/11/94 


Need Section, Div of Facility Svcs, DHR, and Wilmington Perfusion 








Corp. and Howard F. MarkB, Jr., M.D. 








esbyterian-Orthopaedic Hospital v. Department of Human Resources 


93 DHR 0805 


Reilly 


03/11/94 


dy Hoben Wallace v. Department of Human Resources 


93 DHR 0935 


Gray 


05/23/94 


well Stafford v. Department of Human Resources 


93 DHR 1381 


Gray 


04/15/94 


i \ision of Medical Assistance 








&., by and through her agent & Personal Rep., Hank Neal v. DHR 


93 DHR 0528 


Gray 


04/27/94 


avid You v. Department of Human Resources 


93 DHR 1113 


Gray 


04/05/94 


ivision of Medical Assistance v. Catawba Cty Dept. of Social Services 


93 DHR 1778 


West 


03/04/94 


i Ann Leidy, MD/Dorothea Dix Hosp. Child & Youth v. Medical Assis. 


94 DHR 0448 


Chess 


06/21/94 


Ivision of Social Services 








relyn Moore v. Department of Human Resources 


94 DHR 0293 


Reilly 


04/15/94 


athaniel Harrell, Annie Harrell v. Department of Social Services 


94 DHR 0440 


Gray 


06/27/94 


Child Support Enforcement Section 








illiam HeckBtall v. Department of Human Resources 


93 CSE 1077 


Reilly 


03/14/94 


ither Hatcher v. Department of Human Resources 


93 CSE 1082 


Mann 


05/24/94 


yan Jeffrey Cole v. Department of Human Resources 


93 CSE 1091 


Bee ton 


03/30/94 


ithony E. Bullasd v. Department of Human Resources 


93 CSE 1094 


Nesnow 


06/13/94 


exter L. Chambers v. Department of Human Resources 


93 CSE 1124 


West 


03/28/94 


maid E. Johnson v. Department of Human Resources 


93 CSE 1125 


Bee ton 


03/30/94 


>ger Moore v. Department of Human Resources 


93 CSE 1127 


Becton 


04/14/94 


vin Lee Martin v. Department of Human Resources 


93 CSE 1 128 


Nesnow 


04/04/94 


)bert Young v. Department of Human Resources 


93 CSE 1133 


Reilly 


04/18/94 


enry M. Dillard v. Department of Human Resources 


93 CSE 1 135 


Nesnow 


06/13/94 


itonio Townsend v. Department of Human Resources 


93 CSE 1139 


Becton 


03/30/94 


:ith M. Gray v. Department of Human Resources 


93 CSE 1140 


Nesnow 


06/28/94 


oy E. Pinkney v. Department of Human Resources 


93 CSE 1148 


Mann 


03/29/94 


ithony A. Macon v. Department of Human Resources 


93 CSE 1149 


Gray 


04/26/94 


alter Lee Corbet! v. Department of Human Resources 


93 CSE 1150 


Reilly 


03/30/94 


e Louis Mayo v. Department of Human Resources 


93 CSE 1161 


West 


04/19/94 


)bby Lewis Smith v. Department of Human Resources 


93 CSE 1162 


Nesnow 


06/16/94 


>uis C Cade v. Department of Human Resources 


93 CSE 1166 


Morrison 


06/16/94 


chard J. Swarm v. Department of Human Resources 


93 CSE 1167 


Reilly 


06/17/94 


ash Andrew Newsome v. Department of Human Resources 


93 CSE 1170 


Mann 


03/17/94 


mes E. Watson v. Department of Human Resources 


93 CSE 1171 


Gray 


04/26/94 


)bert Lee Barrett v. Department of Human Resources 


93 CSE 1172 


Morrison 


04/20/94 


*tty A. Williams, Fred E. Jones v. Department of Human Resources 


93 CSE 1178 


Nesnow 


04/20/94 


ic G. Sykes v. Department of Human Resources 


93 CSE 1181 


Becton 


04/20/94 


illie C. Hollis v. Department of Human Resources 


93 CSE 1191 


Becton 


05/09/94 


noest N. Pruitt Jr. v. Department of Human Resources 


93 CSE 1 197 


Nesnow 


06/28/94 


srnadett Cook v. Department of Human Resources 


93 CSE 1202 


Gray 


04/27/94 


;m Person v. Department of Human Resources 


93 CSE 1214 


Morrison 


06/16/94 


)bby Lee McCullers Jr. v. Department of Human Resources 


93 CSE 1215 


Reilly 


06/17/94 


indall R. Rhodes v. Department of Human Resources 


93 CSE 1219 


Nesnow 


06/16/94 


ennis W. Nolan v. Department of Human Resources 


93 CSE 1254 


Morrison 


04/27/94 


)bert Calvin Connor v. Department of Human Resources 


93 CSE 1258 


West 


04/19/94 


mes D. Williams v. Department of Human Resources 


93 CSE 1259 


West 


04/19/94 


iiighn D. Pearsall v. Department of Human Resources 


93 CSE 1267 


Becton 


04/20/94 


cDaniel Teeter Jr. v. Department of Human Resources 


93 CSE 1274 


Morrison 


06/30/94 


ng D. Graham v. Department of Human Resources 


93 CSE 1275 


Becton 


05/18/94 


srek Watson v. Department of Human Resources 


93 CSE 1283 


Reilly 


06/30/94 


ither Borden v. Department of Human Resources 


93 CSE 1284 


West 


06/23/94 


alter B. Lester v. Department of Human Resources 


93 CSE 1287 


Nesnow 


06/28/94 


irry Cornelius Smith v. Department of Human Resources 


93 CSE 1302 


Morrison 


06/30/94 


'8 NORTH CAROLINA REGISTER 


July 


15, 1994 576 



CONTESTED CASE DECISIONS 








CASE 




DATE OF 


PUBLISHED DECISION 


AGENCY 


NUMBER 


ALJ 


DECISION 


REGISTER CITATION 


Robert C. Lee Jr. v. Department of Human Resources 


93 CSE 1303 


Reilly 


06/30/94 




Sidney Ray Tuggle Jr. v. Department of Human Resources 


93 CSE 1307 


West 


04/25/94 




Gregory N. Winley v. Department of Human Resources 


93 CSE 1316 


Bee too 


06/14/94 




Ronald Brown v. Department of Human Resources 


93 CSE 1318 


Bccton 


06/29/94 




James L. Phillips v. Department of Human Resources 


93 CSE 1326 


Reilly 


06/17/94 




George Aaron Collins v. Department of Human Resources 


93 CSE 1331 


West 


04/25/94 




Samuel L. Dodd v. Department of Human Resources 


93 CSE 1357 


Gray 


03/31/94 




William A. Sellers v. Department of Human Resources 


93 CSE 1359 


Morrison 


04/20/94 




Jerry Mclver v. Department of Human Resources 


93 CSE 1362 


Reilly 


06/30/94 




Johnny B. Little v. Department of Human Resources 


93 CSE 1363 


West 


06/23/94 




Kenneth W. Cooper v. Department of Human Resources 


93 CSE 1364 


West 


04/27/94 




Charles W. Norwood Jr. v. Department of Human Resources 


93 CSE 1385 


West 


06/13/94 




David L. Terry v. Department of Human Resources 


93 CSE 1386 


Mann 


05/18/94 




Steven A. Elmquist v. Department of Human Resources 


93 CSE 1392 


Reilly 


04/29/94 




Kelvin Dean Jackson v. Department of Human Resources 


93 CSE 1394 


West 


06/13/94 




Dennis E. Fountain Jr. v. Department of Human Resources 


93 CSE 1414 


Chess 


05/13/94 




Mark E. Rogere v. Department of Human Resources 


93 CSE 1415 


Mann 


05/03/94 




Edna \fcnCannon v. Department of Human Resources 


93 CSE 1417 


Morrison 


06/14/94 




Thomas A. Ayers v. Department of Human Resources 


93 CSE 1431 


Morrison 


06/30/94 




Daniel Thomas Hefele v. Department of Human Resources 


93 CSE 1432 


Morrison 


04/28/94 




Gilbert J. Gutierrez v. Department of Human Resources 


93 CSE 1433 


Morrison 


05/13/94 




Alton D. Johnson v. Department of Human Resources 


93 CSE 1434 


Reilly 


04/29/94 




Darryl C. Thompson v. Department of Human Resources 


93 CSE 1435 


Reilly 


06/30/94 




Chester Sanders v. Department of Human Resources 


93 CSE 1437 


West 


04/19/94 




Rodney Guyton v. Department of Human Resources 


93 CSE 1439 


West 


04/21/94 




Donald W. Clark v. Department of Human Resources 


93 CSE 1441 


Nesnow 


05/13/94 




William E. David Jr. v. Department of Human Resources 


93 CSE 1442 


Nesnow 


05/02/94 




John J. Gabriel v. Department of Human Resources 


93 CSE 1452 


Chess 


05/16/94 




Clark Anthony Bryant v. Department of Human Resources 


93 CSE 1455 


Gray 


06/30/94 




Timothy D. Evans v. Department of Human Resources 


93 CSE 1460 


Reilly 


04/28/94 




Billy Edward Smith v. Department of Human Resources 


93 CSE 1461 


West 


04/19/94 




Allen D. Terrell v. Department of Human Resources 


93 CSE 1463 


Nesnow 


05/02/94 




Ray C. Moses v. Department of Human Resources 


93 CSE 1464 


Nesnow 


04/28/94 




Mickey Bridgett v. Department of Human Resources 


93 CSE 1468 


Becton 


05/24/94 




Bart Ransom v. Department of Human Resources 


93 CSE 1495 


Morrison 


04/29/94 




William H. Simpson Sr. v. Department of Human Resources 


93 CSE 1497 


West 


04/19/94 




James D. McClure Jr. v. Department of Human Resources 


93 CSE 1500 


Bee ton 


05/13/94 




Douglas L. Cherrix v. Department of Human Resources 


93 CSE 1512 


Gray 


05/13/94 




Dwayne Lamont Thompson v. Department of Human Resources 


93 CSE 1515 


Morrison 


04/21/94 




Horace Lee Bass v. Department of Human Resources 


93 CSE 1520 


Morrison 


05/13/94 




Michael Wilder v. Department of Human Resources 


93 CSE 1521 


Reilly 


04/28/94 




James A. Cephas v. Department of Human Resources 


93 CSE 1523 


Reilly 


05/13/94 




Edward E. Furr v. Department of Human Resources 


93 CSE 1524 


Reilly 


06/17/94 




Mark E. Campbell v. Department of Human Resources 


93 CSE 1537 


Nesnow 


05/19/94 




Barriet Easterling v. Department of Human Resources 


93 CSE 1560 


Mann 


05/18/94 




Wade A. Burgess v. Department of Human Resources 


93 CSE 1568 


Morrison 


04/28/94 




Billy Dale Beaney v. Department of Human Resources 


93 CSE 1569 


Morrison 


05/13/94 




James E. Wiggins Sr. v. Department of Human Resources 


93 CSE 1571 


Morrison 


05/13/94 




Timothy J. Jones v. Department of Human Resources 


93 CSE 1576 


West 


04/19/94 




Randall E. Hunter v. Department of Human Resources 


93 CSE 1579 


West 


04/19/94 




Cyrus R. Luallen v. Department of Human Resources 


93 CSE 1583 


Nesnow 


06/16/94 




Alton E. Simpson Jr. v. Department of Human Resources 


93 CSE 1591 


Becton 


04/20/94 




Johnny T. Usher v. Department of Human Resources 


93 CSE 1592 


Chess 


05/19/94 




Charles Darrell Matthews v. Department of Human Resources 


93 CSE 1596 


West 


06/13/94 




John William \&nce Jr. v. Department of Human Resources 


93 CSE 1597 


Becton 


05/13/94 




Michael S. Rhynes v. Department of Human Resources 


93 CSE 1599 


Nesnow 


06/30/94 




Brian Gilmore v. Department of Human Resources 


93 CSE 1615 


Chess 


05/13/94 




Jesse Jeremy Bullock v. Department of Human Resources 


93 CSE 1632 


Morrison 


06/14/94 




Ronald E. Loweke v. Department of Human Resources 


93 CSE 1635 


Reilly 


06/17/94 




Robert D. J^rker v. Department of Human Resources 


93 CSE 1637 


Reilly 


06/29/94 




Charles F. McKirahan Jr. v. Department of Human Resources 


93 CSE 1640 


West 


06/14/94 




Benjamin J. Stroud v. Department of Human Resources 


93 CSE 1648 


Becton 


05/19/94 




Tony A. Miles v. Department of Human Resources 


93 CSE 1654 


Mann 


05/24/94 




Dwayne L. Allen v. Department of Human Resources 


93 CSE 1655 


Mann 


05/17/94 




Joe C. Dean v. Department of Human Resources 


93 CSE 1715 


Gray 


05/23/94 




Raymond Scott Eaton v. Department of Human Resources 


93 CSE 1761 


Becton 


06/29/94 




Roys ion D. Blandfbrd III v. Department of Human Resources 


94 CSE 0095 


West 


04/19/94 




Daron Wayne Smith v. Department of Human Resources 


94 CSE 0300 


Gray 


06/27/94 




577 9:8 NORTH CAROLINA REGISTER 


July 15, 1994 



CONTESTED CASE DECISIONS 



AGENCY 

USTICE 

Jam Systems Licensing Board 

Jarm Systems Licensing Boaid v. George P. Baker 

'ixvate Protective Services Board 

any C. Hopkins v. Private Protective Services Board 
iregory K. Brooks v. Private Protective Services Board 
tcphen M. Rose v. Private Protective Services Boaid 
emuel Lee Clark Jr. v. Private Protective Services Board 

raining and Standards Division 

\irtins Lance Poteat v. Criminal Justice Ed. & Training Stds. Comm. 
rtllie David Moore v. Criminal Justice Ed. & Training Stds. Comm. 
ilenn Travis Stout v. Criminal Justice Ed. & Training Stds. Comm. 
teven W. Wray v. Sheriffs' Education & Training Standards Comm. 
Stevan North v. Sheriffs' Education & Training Standards Comm. 
Iregory Blake Manning v. Criminal Justice Ed. & Training Stds. Comm. 
t/illiam Franklin Sheetz v. Sheriffs' Education & Training Stds. Comm. 

lORTUARY SCIENCE 

lortuary Science v. Perry J. Brown, & Brown's Funeral Directors 

XJBLIC EDUCATION 

fancy Watson v. Boaid of Education 

met L. Wilcox v. Carteret County Boaid of Education 

TATE HEALTH BENEFITS OFFICE 

inda C Campbell v. Teaches & St Emp Major Medical Plan 
imothy L. Coggins v. Teachers' & St Emp Comp Major Med Plan 

TATE PERSONNEL 

gncuburai and Technical State University 

.inda D. Williams v. Agricultual and Technical State University 
lanita D. Murphy v. Agricultural and Technical State University 
nomas M. Simpson v. Agricultural and Technical State University 

department of Agriculture 

•onald H. Crawford v. Department of Agriculture 

'atatrba County 

andra J. Cunningham v. Catawba County 

lorth Carolina Central University 

[a-Yilyah Ha-She'B v. NCCU 

lurry Hospital 

harles F. Fields v. Cherry Hospital 

department of Commerce 

nth Daniel-Perry v. Department of Commerce 

Apartment of Correction 

eland K. Williams v. Department of Correction 



CASE 
NUMBER 



93 DOJ 0457 



93 DOJ 1618 

94 DOJ 0008 
94 DOJ 0359 
94 DOJ 0360 



93 BMS 0532 



93 EDC 0234 
93EDC0451 



93 INS 0410 
93 INS 0929 



94OSP0108 



93 OSP 1097 



93 OSP 0875 



94 OSP 0498 



93 OSP 0725 



91 OSP 1287 



ALJ 



DATE OF 
DECISION 



Nesnow 03/10/94 



Morrison 03/07/94 

Nesnow 06/28/94 

Nesnow 05/19/94 

Nesnow 05/19/94 



93 DOJ 0231 


Chess 


03/28/94 


93 DOJ 1071 


Nesncw 


04/1 1/94 


93 DOJ 1409 


Gray 


03/03/94 


93 DOJ 1803 


Chess 


06/29/94 


94 DOJ 0040 


Chess 


06/16/94 


94 DOJ 0048 


Gray 


03/29/94 


94 DOJ 0196 


Chess 


06/16/94 



Chess 03/28/94 



Chess 02/28/94 

Mann 02/21/94 



Becton 04/22/94 

Morrison 03/04/94 



93 OSP 0089 


Chess 


03/23/94 


93 OSP 0708 


Morrison 


03/16/94 


93 OSP 1393 


Gray 


03/24/94 



Reilly 



Reilly 



Becton 



05/23/94 



04/29/94 



04/13/94 



Morrison 06/15/94 



Chess 



Chess 



03/04/94 



02/22/94 



PUBLISHED DECISION 
REGISTER CITATION 



9:3 NCR 218 



9:2 NCR 108 



9:4 NCR 292 



9:3 NCR 211 



9:1 NCR 63 



NORTH CAROLINA REGISTER 



July 15, 1994 



578 



CONTESTED CASE DECISIONS 



AGENCY 



CASE 
NUMBER 



ALJ 



DATE OF 
DECISION 



PUBLISHED DECISION 
REGISTER CITATION 



Elroy Lewis v. North Central Area - Dept of Correction, Robert Lewis 92 OSP 1770 

Steven R. Kellison v. Department of Correction 93 OSP 0283 

Bert Esworthy v. Department of Correction 93 OSP 071 1 

Merron Burrus v. Department of Correction 93 OSP 1145 

Richaid Hopkins v. Department of Correction 94 OSP 0041 

Alfred B. Hunt v. Department of Correction 94 OSP 0243 

Charles Home v. Equal Emp. Opportunity Officer & Dept. of Correction 94 OSP 0244 

Adrian E. Graham v. Intensive Probation/Rirole 94 OSP 0261 

Guilford Correctional Center 

Ann R. Williams v. Guilford Correctional Center #4440 

Cosmetic Art Examiners 

Mary Quaintance v. N.C. State Board of Cosmetic Art Examiners 

Department of Crime Control and Public Safety 



94 OSP 0428 



94 OSP 0372 



93 OSP 1780 



94 OSP 0207 



93 OSP 1069 



Don R. Massenburg v. Department of Crime Control & Public Safety 
Fred L. Kearney v. Department of Crime Control & Public Safety 
Sylvia Nance v. Department of Crime Control & Public Safety 

Durham County Health Department 

Lylla Denell Stockton v. Durham County Health Department 

Elizabeth City State University 

James Charles Knox v. Elizabeth City State University 

Employment Security Commission of North Carolina 

Rejeannc B. LcFrancois v. Employment Security Commission of N.C. 

Department of Environment, Health, and Natural Resources 

Division of Marine Fisheries 

William D. Nicely v. Environment, Health, & Natural Resources 

Fayetteville State University 

Roscoe L. Williams v. Fayetteville State University 

Department of Human Resources 

Inez Latta v. Department of Human Resources 

Charla S. Davis v. Department of Human Resources 

Rose Mary Taylor v. Department of Human Resources, Murdoch Center 

David R. Rodgers v. Jimmy Summerville, Stonewall Jackson School 

Durham County Department of Social Services 
Belinda E Jones v. Daniel Hudgins, Durham Cty Dept of Social Svcs 93 OSP 0728 

Haywood County Department of Social Services 
Dorothy Morrow v. Haywood County Department of Social Services 94 OSP 0186 

Menial Health/Mental Retardation 
Yvonne G. Johnson v. Blue Ridge Mental Health 93 OSP 1604 

Viike County Mental Health, Developmenal Disabilities, and Substance Abuse Services 
Julia Morgan Brannon v. Wake County MD/DD/SAS 94 OSP 0214 



92 OSP 1454 



93 OSP 0487 



Becton 05/24/94 

Chess 06/15/94 

Chess 04/21/94 

West 06/01/94 

Chess 06/16/94 

Reilly 04/20/94 

Ncsnow 06/16/94 

Morrison 04/26/94 



West 06/22/94 



9:6 NCR 395 



Chess 



Gray 



Gray 



West 



Becton 



West 



Chess 



West 



Becton 



Reilly 



06/14/94 



90 OSP 0239 


Chess 


04/28/94 


91 OSP 0401 


West 


03/18/94 


92 OSP 1463 


Reilly 


03/21/94 



05/25/94 



06/17/94 



04/08/94 



05/04/94 



06/22/94 



93 OSP 0830 


Becton 


03/28/94 


93 OSP 1762 


Gray 


03/03/94 


93 OSP 0047 


Gray 


05/06/94 


94 OSP 0087 


Chess 


03/16/94 



04/11/94 



06/17/94 



03/18/94 



04/14/94 



9:5 NCR 333 



I 



579 



9:8 



NORTH CAROLINA REGISTER 



July 15, 1994 



CONTESTED CASE DECISIONS 



AGENCY 



CASE 
NUMBER 



ALJ 



DATE OF 
DECISION 



PUBLISHED DECISION 
REGISTER CITATION 



N.C. State University 

Laura K. Reynolds v. N.C. State Univereity - Dept. of Public Safety 

Department of Transportation 

Glenn I. Hodge Jr. v. Samuel Hunt, Sec"y Dept of Transportation 
Glenn I. Hodge Jr. v. Samuel Hunt, Sec"y Dept of Transportation 
Betsy Johnston Powell v. Department of Transportation 
Clyde Lem Hairston v. Department of Transportation 
Henry C. Puegh v. Department of Transportation 

University of North Carolina at Chapel Hill 

Eric W. Browning v. UNC-Chapel Hill 

UNC Hospitals 

Barry Alonzo Nichols v. UNC Hospitals Central Dist. Sect. 

Wake County School System 

Lula Mae Freeman v. Wake County School System 

The WUtaker School 

Dwayne R. Cooke v. The Whitaker School 

STATE TREASURER 

Retirement Systems Division 

Molly Wiebenson v. Bd.ATrustees/Teachers' & State Employees' Ret. Sys. 
Nathan Fields v. Bd. /Trustees/Teachers' & State Employees' Ret. Sys. 
John C. Russell v. Bd. /Trustees/Teachers' &. State Employees' Ret. Sys. 
Robert A. Slade v. Bd./Trustees/N.C. Local Govtl. Emp. Ret. SyBtem 
Connie B. Grant v. Bd. /Trustees/Teachers' & State Employees' Ret. Sys. 
James E. Walker, Inci &. Admin for the Estate of Sarah S. Walker v. Bd./ 

Trustees/N.C. Local Govt. Emp. Ret. System 
Elizabeth M. Dudley v. Bd. /Trustees/Teachers' & State Emps' Ret. Sys. 
Kenneth A. Glenn v. Bd. /Trustees/Teachers' & St Employees' Ret. Sys. 
Joseph Fulton v. Bd. /Trustees/Teachers' &. State Employees' Ret. Sys. 

UNIVERSITY OF NORTH CAROLINA 

Nixon Omolodun v. UNC Physicians and Associates 



92 OSP 0828 Morgan 05/26/94 



93 OSP 0297* 1 


Morrison 


03/10/94 


9:1 NCR 


60 


93 OSP 0500* 1 


Morrison 


03/10/94 


9:1 NCR 


60 


93 OSP 0550 


Morrison 


03/28/94 






93 OSP 0944 


Chess 


02/28/94 






93 OSP 1710 


Nesnow 


05/24/94 







93 OSP 0925 



94 OSP 0509 



94 OSP 0576 



94 OSP 0328 



Morrison 05/03/94 



Morrison 06/15/94 



Morrison 06/28/94 



Chess 



06/02/94 



9:5 NCR 342 



92 DST 0015 


Morgan 


05/26/94 


9:6 


NCR 


403 


93 DST 0161 


Morrison 


05/18/94 








93 DST 0164 


West 


03/07/94 








93 DST 0785 


Bccton 


03/18/94 


9:1 


NCR 


68 


93 DST 0883 


Chess 


06/15/94 








93 DST 1054 


Becton 


05/31/94 


9:7 


NCR 


490 


93 DST 1474 


Nesnow 


03/28/94 








93 DST 1612 


Morrison 


05/18/94 








93 DST 1731 


Becton 


05/25/94 









94 UNC 0295 



Chess 



06/27/94 



9:8 



NORTH CAROLINA REGISTER 



July 15, 1994 



580 



CONTESTED CASE DECISIONS 



STATE OF NORTH CAROLINA 
COUNTY OF FORSYTH 



IN THE OFFICE OF 

ADMINISTRATIVE HEARINGS 

93 EHR 1781 



THE TOWN OF KERNERSVHXE 

(LQS 93-053) 

Petitioner, 



NORTH CAROLINA DEPARTMENT OF 
ENVIRONMENT, HEALTH, AND NATURAL 
RESOURCES, DIVISION OF LAND RESOURCES 
Respondent 




For Petitioner: 



For Respondent: 



This matter was heard in High Point, North Carolina on May 23, 1994, by Administrative Law Judge 
Sammie Chess, Jr. The Petitioner filed a petition for a Contested Case Hearing on December 23, 1993. 

APPEARANCES 

John G. Wolfe, III 
WOLFE & COLLINS, P.A. 
101 South Main Street 
Kernersville, NC 27284 

Elizabeth Rouse Mosley 
Assistant Attorney General 
N.C. Department of Justice 
P.O. Box 629 
Raleigh, NC 27602-0629 

ISSUES 

Should a civil penalty be assessed against the Town of Kernersville pursuant to N.C.G.S. 113A-64(a)? 

Based upon careful consideration of the testimony and evidence presented at the hearing and the 
documents and exhibits received into evidence, the undersigned makes the following: 

FINDINGS OF FACT 

1. That the Town of Kernersville commenced construction of a roadway project known as 
Industrial Park Drive (hereinafter referred to as "IPD") during the month of July, 1992. 

2. That prior to the commencement of the aforementioned construction, the Town of Kernersville 
submitted an Erosion Control plan to the North Carolina Department of Environment, Health, and Natural 
Resources, Division of Land Resources, Land Quality Section (hereinafter referred to as "DEHNR") for 
review. That said plan was approved by the DEHNR on June 26, 1992 with one Performance Reservation. 

3. That during the construction of the IPD project by the Town of Kernersville, private 
development by Summer Paper Tube Company occurred on adjoining property. 



581 



9:8 



NORTH CAROLINA REGISTER 



July 15, 1994 



CONTESTED CASE DECISIONS 



4. That the development by Summer Paper Company was a land disturbing activity 
encompassing approximately 15 acres, and which development included the stripping of virtually all of the 
vegetation from the said 15 acre site of Summer Paper Tube Company. 

5. That during the month of November 1992, erosion of soil occurred on the Summer Paper 
Tube site in sufficient quantity to cause a great quantity of sedimentation to leave the Summer Paper Tube site 
and cross the Town of Kernersville IPD site, covering the portions of the same 50-75 feet in width and several 
inches in depth. That further, the erosion of such soil was of a magnitude so as to cause at least two traffic 
accidents on the newly constructed IPD. That the sedimentation which crossed the Town of Kernersville IPD 
project site, also left the Town of Kernersville site and proceeded toward and entered the tributary of the Deep 
River which was adjacent to both the Summer Paper Tube and Town of Kernersville construction sites. That 
the town of Kernersville street crew cleared and cleaned the IPD site of the sedimentation which had eroded 
from the Summer Paper Tube site. 

6. That, again, approximately two or three months later, there was erosion upon the Summer 
Paper Tube site which caused sedimentation to leave that site, cross the Town of Kernersville site and proceed 
as the same had occurred in November 1992. That again, the Town of Kernersville street crew cleared and 
cleaned the IPD site of the sedimentation which had eroded from the Summer Paper Tube site. 

7. That the NCDEHNR, through its employee Gray Hauser, first examined the Town of 
Kernersville IPD site on May 4, 1993. 

8. That an inspection report was filed on May 4, 1993, finding the Town of Kernersville site 
not to be in compliance with the S.P.C.A. Rules of DEHNR; that corrective actions to be taken by the Town 
of Kernersville were noted upon said Inspections Report; that a Notice of Violation of the Sedimentation 
Pollution Control Act was forwarded to the Town of Kernersville on May 5, 1993 and received by the Town 
of Kernersville on Friday May 7, 1993. That the Town of Kernersville was informed in the Notice of 
Violation that if the violations were corrected within the time specified for compliance that no further legal 
action would be pursued. That the Town of Kernersville contacted its contractor for the project, Sherrill 
Paving Company, on the following Monday, May 10, 1993, and instructed said contractor to undertake all 
corrective actions to comply with the prior Inspections Report of May 4, 1993. 

9. That the contractor, Sherrill Paving Company, notified Gray Hauser of DEHNR, on or about 
May 21, 1993, that the necessary work to comply with the Corrective Actions Needed, as noted on the May 
4, 1993 Inspections Report, had been completed. 

10. That on May 28, 1993 Gray Hauser inspected the IPD site and filed an Inspections Report; 
that while the Inspections Report filed as of said date recited numerous Corrective Actions Needed, the 
original Corrective Actions Needed as cited May 4, 1993, and noted in the Notice of Violation of the 
Sedimentation Pollution Control Act previously forwarded to the Town of Kernersville, had in fact either been 
previously complied with, or substantially complied with, by the Town of Kernersville. 

11. That during the course of inspections by DEHNR, from May 4, 1993 to August 18, 1993, 
the Town of Kernersville acted in good faith in attempting to comply with all alleged violations of the 
Sedimentation Pollution Control Act, whether cited on May 4, 1993 or on subsequent dates of inspection. 

12. That the Town of Kernersville, throughout the process of Inspections from May 4, 1993 to 
August 18, 1993, and despite heavy rains from time to time, acted in good faith and attempted to deal with 
all noted violations and/or corrective actions and/or all reasonable requests of DEHNR. 

13. That during the course of inspections by DEHNR, and sedimentation which eroded, due to 
the construction of the IPD site by the Town of Kernersville, was slight in nature, particularly in contrast and 
comparison with the sedimentation which eroded from the aforementioned Summer Paper Tube site. That 
there was no calculation of eroded sedimentation which left the Town of Kernersville site presented by 
DEHNR. 



9:8 NORTH CAROLINA REGISTER July 15, 1994 582 



CONTESTED CASE DECISIONS 



14. That the May 28, 1993 DEHNR Inspections Report included additional findings and 
Corrective Actions Needed which were over and above those cited on May 4, 1993, as did subsequent 
Inspection Reports of June 15, 1993, June 25, 1993, and August 18, 1993. That the Notice of Continuing 
Violations of the Sedimentation Pollution Control Act forwarded to the Town of Kernersville on June 17, 1993 
by DEHNR, recited the failure to comply with the May 4, 1993 Inspections report, which the Court finds as 
having been complied with, or substantially complied with. 

15. That the Summer Paper Tube land disturbing activity was under the jurisdiction of another 
enforcement agency and being inspected by the same, to wit: the Winston-Salem/Forsyth County Inspections 
Department; that the Town of Kernersville cannot be held liable or responsible for the sedimentation which 
escaped the Summer Paper Tube Company property and crossed the Town of Kernersville IPD construction 
site. 

16. That the findings of feet by the DEHNR, in Assessing Civil Penalties in this matter, by use 
of the Guidelines for Assessing Civil Penalties, only mirrored the findings of the earlier Notice (to the Town 
of Kernersville) of Violation of the Sedimentation Pollution Control Act, without any further independent 
study or findings; that the Civil Penalty Assessment for SPCA Violations was calculated by the Director of 
DEHNR in direct reliance upon fects and information provided the Director from staff of DEHNR, and 
without any further independent study or findings. That a portion of such findings and calculations were 
unfounded and arbitrary in nature. 

17. That the Town of Kernersville, having been notified of specific violations of the 
Sedimentation Pollution Control Act, and having been specifically given an opportunity to correct such noted 
violations by DEHNR, and having been informed that the correction of such violations would result in no 
further legal action being taken by DEHNR, and the Town of Kernersville having acted in good faith in 
correcting, or substantially correcting, all such noted violations, should not be subject to Civil Penalties in 
this matter. 

Based on the foregoing Findings of Fact, the undersigned makes the following: 

CONCLUSIONS OF LAW 

1 . The purpose of the Sedimentation Pollution Control Act is for the protection of the natural 
resources, and adjoining properties by the DEHNR. G.S. 113A-2. 

2. It is the responsibility of each person conducting land disturbing activity, governed by the 
Sedimentation Pollution Control Act, to comply with the Act and with the Rules and Regulations properly 
promulgated for its enforcement. G.S. 113A-57(3). 

3. A person is entitled to Due Process, both constitutionally and under the Sedimentation 
Pollution Control Act, which includes proper notification of violation(s) of the Act and the opportunity to 
comply with said Act. G.S. 113A-64(a)(l)(2)(3), and (b). 

4. It is the responsibility of the DEHNR to properly notify a person of Violation(s) of the 
Sedimentation Pollution Control Act, and to give that person the reasonable opportunity to comply with the 
Act. That proper notification includes the setting forth of all violations and the actions necessary for 
compliance with the Act. 

5. Civil penalties, provided for under the Sedimentation Pollution Control Act, are to be founded 
upon feet and not arbitrary in nature. G.S. 113A-64. 

Based on the foregoing Findings of Fact and Conclusions of Law, the undersigned makes the 
following: 



583 9:8 NORTH CAROLINA REGISTER July 15, 1994 



CONTESTED CASE DECISIONS 



RECOMMENDED DECISION 

It is recommended that no civil penalties be assessed against Petitioner, the Town of Kernersville, 
(LQS 93-053), by the Respondent. 

ORDER 

It is hereby ordered that the agency serve a copy of the final decision on the Office of Administrative 
Hearings, RO. Drawer 27447, Raleigh, N.C. 27611-7447, in accordance with North Carolina General Statute 
150B-36(b). 

NOTICE 

The agency making the final decision in this contested case is required to give each party an 
opportunity to file exceptions to this recommended decision and to present written arguments to those in the 
agency who will make the final decision. G.S. 150B-36(a). 

The agency is required by G.S. 150B-36(b) to serve a copy of the final decision on all parties and to 
furnish a copy to the parties' attorney of record and to the Office of Administrative Hearings . 

The agency that will make the final decision in this contested case is the North Carolina Department 
of Environment, Health, and Natural Resources. 

This the 29th day of June, 1994. 



Sammie Chess, Jr. 
Administrative Law Judge 



9:8 NORTH CAROLINA REGISTER July 15, 1994 584 



NORTH CAROLINA ADMINISTRATIVE CODE CLASSIFICATION SYSTEM 



1 he North Carolina Administrative Code (NCAC) has four major subdivisions of rules. Two of these, 
titles and chapters, are mandatory. The major subdivision of the NCAC is the title. Each major 
department in the North Carolina executive branch of government has been assigned a title number. 
Titles are further broken down into chapters which shall be numerical in order. The other two, 
subchapters and sections are optional subdivisions to be used by agencies when appropriate. 



TITLE/MAJOR DIVISIONS OF THE NORTH CAROLINA ADMINISTRATIVE CODE 
TITLE DEPARTMENT LICENSING BOARDS CHAPTER 



1 


Administration 


Acupuncture 


1 


2 


Agriculture 


Architecture 


2 


3 


Auditor 


Auctioneers 


4 


4 


Commerce 


Barber Examiners 


6 


5 


Correction 


Certified Public Accountant Examiners 


8 


6 


Council of State 


Chiropractic Examiners 


10 


7 


Cultural Resources 


General Contractors 


12 


8 


Elections 


Cosmetic Art Examiners 


14 


9 


Governor 


Dental Examiners 


16 


1 io 


Human Resources 


Dietetics/Nutrition 


17 


n 


Insurance 


Electrical Contractors 


18 


12 


Justice 


Electrolysis 


19 


13 


Labor 


Foresters 


20 


14A 


Crime Control & Public Safety 


Geologists 


21 


15A 


Environment, Health, and Natural 


Hearing Aid Dealers and Fitters 


22 




Resources 


Landscape Architects 


26 


16 


Public Education 


Landscape Contractors 


28 


17 


Revenue 


Marital and Family Therapy 


31 


18 


Secretary of State 


Medical Examiners 


32 


19A 


Transportation 


Midwifery Joint Committee 


33 


20 


Treasurer 


Mortuary Science 


34 


•21 


Occupational Licensing Boards 


Nursing 


36 


22 


Administrative Procedures 


Nursing Home Administrators 


37 


23 


Community Colleges 


Occupational Therapists 


38 


24 


Independent Agencies 


Opticians 


40 


25 


State Personnel 


Optometry 


42 


26 


Administrative Hearings 


Osteopathic Examination & Reg. (Repealed) 


44 






Pharmacy 


46 






Physical Therapy Examiners 


48 






Plumbing, Heating & Fire Sprinkler Contractors 


50 






Podiatry Examiners 


52 






Professional Counselors 


53 






Practicing Psychologists 


54 






Professional Engineers & Land Surveyors 


56 






Real Estate Appraisal Board 


57 






Real Estate Commission 


58 






Refrigeration Examiners 


60 






Sanitarian Examiners 


62 






Social Work Certification 


63 






Speech & Language Pathologists & Audiologists 


64 






Therapeutic Recreation Certification 


65 






Veterinary Medical Board 


66 



Note: Title 21 contains the chapters of the various occupational licensing boards. 



585 



9:8 



NORTH CAROLINA REGISTER 



July 15, 1994 



CUMULATIVE INDEX 



CUMULATIVE INDEX 

(April 1994 - March 1995) 

Pages Issue 



1 - 


75 


76 - 


122 


123 - 


226 


227 - 


305 


306 - 


348 


349 - 


411 


412 - 


503 


504 - 


587 



1 


April 


2 


April 


3 


May 


4 


May 


5 


June 


6 


June 


7 


July 


8 


July 



Unless otherwise identified, page references in this Index are to proposed rules. 



AGRICULTURE 

Plant Industry, 127 

COMMERCE 

Alcoholic Beverage Control Commission, 423 
Energy Division, 4 

CRIME CONTROL AND PUBLIC SAFETY 

State Highway Patrol, Division of, 243 

ENVmONMENT, HEALTH, AND NATURAL RESOURCES 

Coastal Management, 443 

DEM/ Air Quality, 80 

Departmental Rules, 254 

Environmental Management, 81, 258, 352 

Health Services, 323, 370, 445 

Mining Commission, 442 

NPDES Permit, 3, 232 

Solid Waste Management, 171, 364 

Water Resources, 165, 255 

Wildlife Resources Commission, 38, 42, 84, 358 

Wildlife Resources Commission Proclamation, 125 

FINAL DECISION LETTERS 

Voting Rights Act, 2, 312, 506 

GOVERNOR/LT. GOVERNOR 

Executive Orders, 1, 123, 227, 306, 349, 412, 504 

HUMAN RESOURCES 

Child Day Care Commission, 10 

Children's Services, 136 

Day Care Rules, 148 

Facility Services, 4, 128, 423, 509 

Medical Assistance, 318, 440, 513 



9:8 NORTH CAROLINA REGISTER July 15, 1994 586 



CUMULATIVE INDEX 



Mental Health, Developmental Disabilities and Substance Abuse Services, 13, 24, 36, 313, 430 

Social Services, 136 

Vocational Rehabilitation Services, 434 

INDEPENDENT AGENCIES 

State Health Plan Purchasing Alliance Board, 99 

INSURANCE 

Life and Health Division, 525 

Multiple Employer Welfare Arrangements, 76 

Special Services Division, 76 

JUSTICE 

Alarm Systems Licensing Board, 351 

Criminal Justice Education and Training Standards Commission, 149 

State Bureau of Investigation, 234, 530 

LABOR 

Mine and Quarry Division, 239 
OSHA, 77, 160 
Variance, 230 

LICENSING BOARDS 

Acupuncture Licensing Board, 44 

Barber Examiners, 563 

Chiropractic Examiners, 376 

Cosmetic Art Examiners, 280 

Landscape Architects, Board of, 95 

Medical Examiners, 192, 565 

Nursing, Board of, 45 

Optometry, Board of Examiners, 194 

Physical Therapy Examiners, 566 

Plumbing, Heating and Fire Sprinkler Contractors, Board of, 96 

Practicing Psychologists, Board of, 97 

Professional Counselors, Board of Licensed, 50 

LIST OF RULES CODIFIED 

List of Rules Codified, 53, 196, 281, 378 

PUBLIC EDUCATION 

Elementary and Secondary Education, 375, 540 

SECRETARY OF STATE 

Securities Division, 476 

STATE PERSONNEL 

Office of State Personnel, 477 

TAX REVIEW BOARD 

Orders of Tax Review, 415 

TRANSPORTATION 

Highways, Division of, 85 

Motor Vehicles, Division of, 89, 276, 542 



587 9:8 NORTH CAROLINA REGISTER July 15, 1994 



NORTH CAROLINA ADMINISTRATIVE CODE 



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